This is according to Paragon’s latest quarterly Financial Adviser Confidence Tracking (FACT) Survey of 200 of the UK’s largest mortgage intermediaries.
The FCA’s proposals, published in May this year, came as a result of the regulator’s Mortgage Market Study which was released in March.
Advised mortgage sales increased from 70% to 97% of mortgage business following the Mortgage Market Review in 2014, when rules were introduced to improve clarity for consumers over whether their mortgage sale was subject to advice or not.
Among those brokers who expect the FCA proposals to lead to an increase in direct business, 44% believe the impact on their own business will be significant and 36% think it will threaten the broker market.
However, 55% of intermediaries surveyed expect the impact of the changes will be minimal, potentially indicating a belief that consumers are likely to continue to seek advice before making a financial commitment. Some 15% of those surveyed said they planned to adapt business models to accommodate the change.
The FCA’s ‘Consultation on mortgage advice and selling standards’ closed on 7 July and is expected to result in a new policy statement in late 2019.
John Heron, managing director of mortgages at Paragon, said: “The mortgage market is set for significant change as technological advances streamline routine processes and make inroads into product comparison and selection.
“However, choosing a mortgage is a major financial decision and advice can be critical in helping customers look beyond the headline interest rate to understand the full cost and benefits of alternative products. Advice is also essential when arriving at an optimum solution for customers with complex requirements.”