Following the introduction of the Mortgage Review in 2014, the Financial Conduct Authority (FCA) has agreed to launch an investigation into mortgage rejections that seem to be unfair.

The new regulations were introduced last year in a bid to prevent a repeat of the 2008 financial crisis. However, some lenders are taking the rules to extremes and some groups feel they have experienced unfair treatment as a result, including pregnant women, pensioners and those looking for a better deal.

A survey conducted by uSwitch revealed that 10 per cent of women aged between 25 and 45 had come into contact with “mortgage discrimination” due to lenders believing that they may struggle to meet repayments due to taking time out of work to care for children, or to pay childcare costs. A quarter of respondents admitted that they had “intentionally hidden family plans” in case it affected their mortgage application. Evidence will be collected by the FCA so it can decide whether it needs to intervene.

Under the new regulations, lenders must conduct an affordability check to make sure they can afford the repayments, especially if interest rates increase. Some mortgage brokers believe that banks are ignoring the advice included in the regulations to use discretion in some circumstances. In some cases, borrowers are being refused a cheaper deal as they are told it wouldn’t be affordable. The FCA wants evidence of problems from interested parties as part of the investigation. Mortgage advisers who have taken a CeMAP training course in London, Liverpool or Manchester may be able to help borrowers find a suitable deal.

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