Key proposals to change mortgage rules “overlook the critical role of mortgage advisers,” and may weaken consumer protection, says the Association of Mortgage Intermediaries.  

The Financial Conduct Authority’s consultation paper on its Mortgage Rule Review plans to make it easier, faster and cheaper for consumers to speak to mortgage lenders, switch products, and remortgage. 

But Ami believes that current suggestions overlook the value of brokers to consumers, and will “reduce access to quality advice” resulting in “poorer outcomes”. 

Currently, 97% of mortgage business is conducted through brokers. 

Ami says: “The intermediary channel is a core strength of the UK mortgage market and Ami questions the underlying assumption that this is a market failure.  

“With low levels of customer complaints, it is unclear where consumer detriment lies.” 

The broker body adds that its concern “is particularly acute around product transfers”. 

It points out that 1.6 million borrowers remortgaged last year, with 83% staying with their existing lender. 

But Ami says: “Many of those who stayed with their existing lender still sought advice, meaning alternative options were still considered alongside the potential for a wider conversation around protection needs.” 

It adds: “By encouraging more consumers to go direct, the FCA risks pushing borrowers into execution-only transactions without fully understanding that a better option may have been available, in addition to the protections and advice they are giving up.” 

Ami is actively engaging with members, the regulator, and other trade bodies to ensure “its voice is heard”. 

Last week, JLM Mortgage Services group director Sebastian Murphy wrote a comment in this title, where he said: “This paper risks undermining the entire value of advice, devalues the role of the adviser and what we provide, and flies in the face of everything the FCA has told us about Consumer Duty over the past few years.”

Ami chief executive Stephanie Charman says: “Mortgage advisers play an irreplaceable role in helping consumers navigate complex, life-changing financial decisions. You simply cannot deliver the Consumer Duty by removing advice.  

“The Duty requires firms to act in ways that deliver good outcomes, support consumer understanding, and empower effective decision-making—none of which are achieved by steering borrowers away from professional advice.  

The proposals set out by the FCA go in the opposite direction. They risk stripping consumers of essential protections while simultaneously threatening the long-term viability of thousands of advice firms across the UK.  

“This isn’t just about loss of income, it’s about undermining an advice model that has proven time and again to act in the consumer’s best interest.”