FCA starts review of mortgage market

LONDON (Reuters) - Britain's financial watchdog said on Wednesday it has begun a review of the mortgage market to see if there are areas where competition may not be working well or could be improved. The regulator's action comes alongside increasing pressure on the British government over a housing shortage in parts of the country and rising house prices that have put owning a home out of reach of many people. The Financial Conduct Authority said it was seeking views on recent reforms of the home loans market, the ability of consumers to get the information they need about mortgages, and the conduct of firms in the sector. "We are seeking stakeholders' views on competition in the mortgage sector," Christopher Woolard, director of strategy and competition at the FCA, said. "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," Woolard said. The "call for inputs" aims to gather views before launching any full-fledged market study next year. It covers a wide range of home loans, including lifetime mortgages, shared ownership, buy-to-let, second charge mortgages and bridging loans. It also includes scrutiny of activities and relationships within the sector, involving lenders, brokers, valuation services and estate agents. The FCA said it would publish a feedback statement in the first quarter of 2016 and set out any further action. "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," Woolard said. (Reporting by Huw Jones, editing by Sinead Cruise. Editing by Jane Merriman)