The Intermediary – June 2025 - Flipbook - Page 26
CHARTING A
COURSE
HOW REGULATION IS SHAPING
THE LENDING LANDSCAPE
by Marvin Onumonu
As the mortgage sector moves through
market was MMR. That was the time that we
defining force. The Financial Conduct Authority’s
decided as an industry that advice was best for
(FCA) consultation paper CP25/11 may have
the end consumer.”
closed, but it continues to fuel speculation and
In the years following these reforms, firms
debate among lenders, brokers and key players
invested in new processes, compliance teams,
across the market.
and technology, striving to meet the rising
For some, the proposals signal a long-awaited
opportunity to streamline lending processes and
increase flexibility; for others, they raise concerns
about weakening the consumer protection
safeguards established over the past decade.
Against this backdrop, the sector is reflecting
expectations of the FCA and restore trust in
the market.
Today, advice is the market’s default, providing
reassurance for both consumers and firms.
Beardmore adds: “The FCA talks about how
97% of transactions are now advised. That’s a
on its regulatory journey and considering the
huge change. Only 3% of the time people do
direction of advice, compliance, and innovation
not get advice and recommendations on their
in the years ahead.
From caution to Consumer Duty
In the aftermath of the Global Financial Crisis,
mortgage lending was reshaped by a wave of
mortgage, and that's great because it's not just
about the product, it's about the term, it's about
the repayment method.”
The introduction of Consumer Duty in
2023 shifted the focus further, from merely
strict regulation. The Mortgage Market Review
following rules to delivering positive customer
(MMR), introduced in 2014, established robust
outcomes. The regulator now expects evidence
affordability checks and made regulated
that borrowers genuinely benefit from products
advice central to most transactions. Industry
and services, requiring not just compliance,
leaders widely consider this a turning point for
but a deeper sense of ethical responsibility and
responsible lending and consumer protection.
proactive care.
Clare Beardmore, director of distribution
and Mortgage Club, mortgage services at L&G,
26
reflects: “One of the biggest changes to our
the middle of the 2020s, regulation remains a
The Intermediary | June 2025
Katrina Hutchins, principal, mortgage policy
at UK Finance, says: “What we see is Consumer
