The Financial Conduct Authority is seeking the input of the industry as it looks to find areas of the lending market which could benefit from improved competition.
The regulator is particularly interested in the effects of the regulatory regime on the market, including any changes made following the Mortgage Market Review, as well as barriers to entry, expansion or innovation. Additionally they also want to hear about the impact of firms’ conduct and relationships on competition.
Christopher Woolard, director of strategy and competition at the FCA, said: “For millions of consumers a mortgage is one of the biggest, if not the biggest, financial transaction they will enter into in their lifetime.
“The mortgage sector also plays a vital role in the financial services industry and many areas of the economy.
“Competition can play a key role in ensuring that the sector works well, delivering consumer benefits through lower prices, better customer service, and more product choice.
“We are seeking stakeholders’ views on competition in the mortgage sector. These views, together with evidence from the FCA’s wider programme of work on mortgages, will help inform any future FCA work on this key sector of the economy, including any future competition market study.”
Parties have until December 18 to submit their views. Should the watchdog decide further action is needed, it will issue a feedback statement in the first quarter of 2016.