If we thought 2020 went quickly, it feels like we blinked and 2021 was over. For most 2021 was another busy year which saw mortgage intermediaries working tirelessly to continue to serve customers, providing support to those impacted by the pandemic whilst also dealing with the challenges and pressures brought on by the stamp duty extension. This is on top of navigating regulatory developments spilling out of the FCA, which show no signs of calming.

For firms involved in household and motor insurance, the FCA’s GI pricing rules apply from the beginning of the year (1 January 2022). It’s great to see the ban on price walking finally come into force. A much needed intervention by the regulator, it will mean existing customers are charged more fairly compared to new customers and provide GI opportunities for mortgage intermediaries as they should find they are more able to compete with online aggregators.

2022 is set to be a significant year for regulation with the FCA’s consultation on Consumer Duty ending in February and new rules set to be confirmed by the end of July (with anticipated implementation by end of April 2023). This is a fundamental shift aimed at raising the bar in retail financial services, setting a higher standard of care to customers beyond the current rules and Principles and ensuring firms put customers at the heart of everything they do, throughout the customer lifecycle. No firm within our sector will be immune from this, even firms that feel they’ve already got this ‘spot on’ will likely have further work to do.  Product providers and intermediaries will have to work even closer together.

The FCA’s consultation on diversity and inclusion in financial services is also set to land at some point during the first half of the year. AMI is active in this space and encourages firms who have not read our recent Viewpoint report to take a look. Whilst it is a difficult read and shows the industry has a lot of work to do, we are proud to have taken the leap forward to openly acknowledge there are issues but crucially we are committed to making change happen.

Elsewhere, the green agenda is set to feature heavily. Government’s Future Homes Standard will ensure new homes are built without fossil fuel heating systems and with higher levels of energy efficiency compared to existing housing stock. Whilst this will apply to new homes built in England from 2025, it does mean that homes undergoing planning permission now will be affected given build lead times.

We will also shortly see the outcome of government consultation on improving home energy performance through lenders, with one of the proposals to introduce voluntary targets for lenders to improve the average EPC rating of the homes in their portfolio to at least band C by 2030. Strengthened EPC rules for the private rental sector are also expected, which will impact BTLs.

2022 will also mark the last full year of the Help to Buy scheme, which is set to end in March 2023. First time buyers will want to understand the alternative options onto the property ladder and advice will play a pivotal role in this. We will continue to see new innovations from the private sector to help bridge the gap left behind after cessation of the Government scheme.

In 2022 we also have the opportunity to reshape the Financial Services Compensation Scheme.  Making sure mortgage brokers only pay for what goes wrong in our sector is crucial.  Avoiding surprise invoices and higher regulatory bills might need your support by lobbying your MP later in the year.  We will tell you if we need your help.

As the trade body for mortgage intermediaries our core aim for 2022 and beyond continues to be making sure your voice is heard. We look forward to seeing what new opportunities and challenges the new year brings.