The mortgage advice market has come under pressure over the past few years. Lenders and intermediaries have had to manage the impact of the most substantial regulatory change in a decade. The market had two years to digest the new rules produced by the FCA’s Mortgage Market Review (MMR), which sought to fundamentally shift the focus onto affordability. Workload has ramped up, with advisers now required to establish affordability on a case by case basis. They also need to hold a relevant mortgage qualification. Swamped with applicants motivated by low interest rates, lenders have turned to intermediaries to help carry the load.

Ultimately, the new rules are positive for advisers as they stipulate that advice is compulsory as part of all interactive sales. However, this is balanced by the fact that high house prices mean that demand for mortgages is weakening in some segments of the population. Younger consumers are increasingly marginalised, although some of this shortfall in demand looks likely to be offset by older consumers investing their liberated pension funds and looking to structure their retirement income favourably.

This report examines the drivers behind the mortgage advice business, including the dynamics of the lending market following the MMR. Mintel’s exclusive consumer research examines mortgage ownership trends alongside attitudes towards mortgage advisers and satisfaction with advice received. The research also covers the main sources of advice used when arranging a mortgage, contrasted with the sources of information consumers intend to use in future.

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