How do I check if a mortgage broker is FCA-regulated?

Visit the FCA's Financial Services Register at register.fca.org.uk and search for the firm by name or reference number. The register will show whether the firm is authorised, what activities it is permitted to carry out, and whether there are any restrictions on its permissions. Any legitimate mortgage broker will be happy for you to verify their status.

What happens if my mortgage lender is not FCA-regulated?

All UK mortgage lenders must be FCA-authorised. If you encounter a firm claiming to offer mortgages without FCA authorisation, it is likely a scam. Do not send money or provide personal information. Report it to the FCA through their website or by calling their consumer helpline. Using an unauthorised firm means you will not have access to the Financial Ombudsman Service or FSCS protection.

What protections does the FCA give mortgage borrowers?

FCA rules require lenders to carry out affordability assessments before lending, provide clear and fair product information, give you a binding mortgage offer, and treat you fairly if you fall into financial difficulty. Brokers must recommend suitable products and disclose their fees. These rules are backed by the right to complain to the Financial Ombudsman Service.

What is the FCA (Financial Conduct Authority)? Meaning Explained

The Financial Conduct Authority (FCA) is the independent body responsible for regulating financial services in the UK. It sets the rules that mortgage lenders, brokers, insurance companies, banks and other financial firms must follow. Its primary objectives are to protect consumers, maintain market integrity and promote effective competition.

All mortgage lenders and brokers operating in the UK must be authorised and regulated by the FCA. This means they must meet minimum standards of conduct, maintain adequate financial resources, and follow the FCA's rules on how mortgages are sold and administered. The FCA's mortgage conduct rules are set out in the Mortgages and Home Finance: Conduct of Business Sourcebook (MCOB).

If you have a complaint about a mortgage lender or broker that the firm has not resolved, you can escalate it to the Financial Ombudsman Service (FOS), which is an independent dispute resolution body. The FCA also operates the Financial Services Compensation Scheme (FSCS), which provides compensation if an authorised firm fails.

You can check whether a firm or individual is FCA-authorised by searching the Financial Services Register on the FCA's website. This is a sensible precaution before using any financial services provider, especially for significant transactions like mortgages.

Example

Before choosing a mortgage broker, Hannah checks the FCA's Financial Services Register to confirm they are authorised. She sees the firm is listed with the correct permissions for "advising on regulated mortgage contracts". This gives her confidence that the broker is required to follow FCA rules on suitability, disclosure and fair treatment. If anything goes wrong, she knows she can complain to the Financial Ombudsman Service.

Key Points

The FCA regulates all UK mortgage lenders, brokers and financial services firms
All mortgage advisers must be FCA-authorised — check the Financial Services Register
FCA rules require lenders and brokers to treat customers fairly and assess affordability
Complaints can be escalated to the Financial Ombudsman Service if unresolved
The FSCS provides compensation protection if an authorised firm goes out of business