The FCA has detailed changes made to its mortgage advice standards on the back of feedback received on its mortgages market study, with a particular focus on making execution-only sales easier

It says that consultation was sought on three potential harms identified in the FCA’s mortgage market study – that the rules may be a barrier to developing tools that help borrowers choose a mortgage; that execution-only customers are diverted to advice when they are not looking for it and that execution-only sales channels are not always easy to use; and that many borrowers, even after having advice, are paying too much.

As a result of the 66 responses it received, the regulator will change its perimeter guidance to make it clear that search tools that allow filtering based on criteria are not giving advice; to bring its standards approach closer to that regarding retail investment advice; to permit more customer interaction before providing advice becomes necessary; and to help make execution-only channels “easier to use.”

As well as this, the new standards will require advisers to explain why they’ve not recommended a cheaper mortgage, with the customer’s needs and situation taken into account, and make “minor amendments” to the handbook text.

The FCA hopes that its standards will provide more choice, prevent customers being given advice when it is not necessary, and support the development of mortgage tools.

The new rules come into effect immediately, but the regulator is allowing a transitional period that ends on 30 July of this year.