"The mortgage market is set for significant change as technological advances streamline routine processes and make inroads into product comparison and selection."
Jackie Bennett, director of mortgages at UK Finance, said the proposed amendments will help firms "easily provide factual information to borrowers who opt to go through the execution-only route, helping them to choose or switch product quickly and efficiently".
Advised mortgage sales increased from 70% to 97% of mortgage business following the Mortgage Market Review in 2014.
However the FCA believes that by raising the trigger points at which firms need to divert customers from an execution-only to an advised channel, a better balance can be achieved.
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 present a threat to the broker market.
One in seven surveyed (15%) plan to adapt their business models to accommodate the change.
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.”
