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CMA Broadens Mortgage Pricing Investigation

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  Published in Business and Finance on Monday, March 2nd 2026 at 8:33 GMT by London Evening Standard
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London, UK - March 2nd, 2026 - The UK's Competition and Markets Authority (CMA) investigation into mortgage pricing practices has broadened its scope, now encompassing not only TSB, Santander and Lloyds Banking Group - the initial focus - but also signaling potential scrutiny of other major lenders. The CMA launched its probe in late February, initially focusing on how these three banks handle mortgage applications from individuals who don't meet standard lending criteria, and concerns are mounting that opaque pricing and unfair treatment may be more widespread than first anticipated.

The original investigation stemmed from growing consumer complaints regarding significant discrepancies in mortgage offers, even amongst applicants with similar financial profiles. These complaints suggested that banks were not consistently applying risk assessments, leading to some borrowers being offered significantly higher interest rates or facing outright rejection, despite appearing equally creditworthy compared to others.

The CMA's core concern revolves around ensuring all mortgage applicants are treated fairly and receive transparent pricing. Lenders are legally obligated to offer suitable and equitable products to all customers, regardless of their circumstances. This includes those with complex income streams, self-employed individuals, those with less conventional credit histories, or applicants requiring larger loan-to-value ratios. The investigation isn't questioning the right of banks to assess risk, but rather how that risk assessment is translated into pricing and lending decisions.

Sources close to the CMA have indicated that initial findings revealed a lack of consistent application of lending policies across the three banks. Specifically, the watchdog is examining whether automated systems used for initial mortgage assessments are inadvertently discriminating against certain groups of applicants. These automated systems, while intended to streamline the process, may be relying on factors that unfairly penalize applicants without a clear and justifiable correlation to actual risk.

"We are concerned that some lenders may not be adequately considering the individual circumstances of applicants who fall outside of standard criteria," stated a CMA spokesperson earlier today. "This could result in these customers being denied access to competitive mortgage rates or even being unfairly rejected altogether. Transparency is key, and applicants deserve to understand exactly how their application is being assessed and how the offered rate is determined."

Legal experts predict that the CMA's powers extend beyond simply issuing fines. While financial penalties are certainly a possibility, the CMA could also mandate banks to overhaul their lending practices, implement greater transparency in their pricing models, and provide redress to affected customers. Some commentators are even suggesting potential structural remedies, such as requiring banks to offer more standardized mortgage products or to allow for greater comparison shopping.

The widening of the investigation's scope is believed to be driven by preliminary data suggesting similar patterns of concern at other major lenders. While the CMA has not publicly named these additional banks, industry sources confirm that NatWest Group and HSBC are likely to be subjected to increased scrutiny in the coming weeks. The Financial Conduct Authority (FCA), which works alongside the CMA, is also expected to launch its own parallel investigation focusing on consumer protection aspects.

The implications of this investigation are far-reaching. The mortgage market is a crucial component of the UK economy, and any disruption to lending practices could have a significant impact on homebuyers and the housing market as a whole. The CMA's actions aim to restore confidence in the mortgage system and ensure that all applicants are treated fairly, fostering a more competitive and transparent lending landscape.

Consumer advocacy groups have welcomed the CMA's intervention. "For too long, borrowers who don't fit the 'ideal' profile have been unfairly penalized," said Sarah Jenkins, CEO of Fair Finance UK. "This investigation is a crucial step towards ensuring a level playing field and protecting vulnerable consumers."

The CMA expects to publish a preliminary report of its findings by the end of the year, with a final decision expected in early 2027.