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The FCA’s final report of the Mortgage Market Study found that there are high levels
of consumer engagement, with over three quarters of consumers switching to a new mortgage
deal within 6 months of moving onto a reversion rate.<p> </p><p>The Government has
worked closely with the FCA to consider how to remove the regulatory barriers that
prevent some customers, particularly those with inactive lenders, from accessing better
deals. The Government welcomes the FCA’s plans to move the affordability assessment
from an absolute test to a relative one. This change removes the regulatory barrier
that prevented some customers, who otherwise may have been able to switch, from accessing
new mortgage products. The Government also welcomes the industry voluntary agreement
covering 95% of the UK mortgage market to help ‘trapped’ customers of active lenders.</p><p>
</p><p>Transparency and fairness in the mortgage market is a priority for the Government.
The Treasury welcomes and supports the work the FCA are doing to improve this as a
result of their findings in the final report of the Mortgage Market Study. The Government
will continue to monitor the market and support the FCA when necessary.</p>
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