“The mortgage sector today is a world away from the one that existed a decade ago”, executive FCA board member and director of strategy and competition, Christopher Woolard has said.

Speaking at UK Finance’s Annual Mortgage Conference, Woolard said “the sector is in a better place than back in 2008, and the market is more competitive”.

“Intense competition means lower rates as they compete to stay in the game – great for consumers, especially those in the later life lending stage. We encourage the industry to continue to be flexible and innovate around the needs of those who are taking out later life borrowing.”

Woolard added that firms will now be able to use modified affordability rates to make it easier to lend to customers and barriers have been removed which will now help vulnerable customers to switch.

In addition, he stated that he doesn’t expect consumers to be transitioned on to a less favourable rate with the move from Libor to Sonia.

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