A STUDY has been launched to research whether there is healthy competition in the mortgage sector.

The Financial Conduct Authority (FCA) is looking at whether customers are in a good position to understand which mortgage products offer good value for money. It aims to find out whether consumers have the tools necessary to make effective decisions on mortgages. These tools could include information provided directly by lenders or price comparison websites and mortgage calculators.

The study will examine the commercial arrangements between lenders, brokers and other parties and whether these lead to conflicts of interest or “misaligned incentives to the detriment of consumers”.

It will also identify whether information could be delivered more effectively to consumers via digital channels.

Christopher Woolard, executive director of strategy and competition at the FCA, said: “As a mortgage is likely to be the biggest financial commitment most people make in their lifetime, we’re keen to ensure that competition in the mortgage sector is healthy and working to the benefit of consumers.”

The FCA is aiming to publish an interim report based on the results of the study in summer 2017. It will then offer its stakeholders an opportunity to comment on the findings of the study.

If the organisation decides that competition in the mortgage sector is not working well it has the power to propose or implement remedies.

The study did not look at commercial mortgages or buy-to-let products.