Nearly One in Ten New FCA-Registered Firms Offer Mortgage Advice: What London Landlords Need to Know

Rising Presence of Mortgage Advice Firms on the FCA Register

Data from the second half of 2025 reveals that out of 3,331 firms newly authorised by the Financial Conduct Authority (FCA), 316—nearly one in ten—provide mortgage advice. While the overall number of authorised financial firms and employees saw a slight decrease, the proportion offering mortgage advice remains significant. Notably, many firms leaving the FCA register were credit brokers, indicating some sector churn.

For landlords and letting agents offering or considering mortgage advice, this trend highlights a regulatory environment where FCA authorisation is crucial and increasingly scrutinised.

Why FCA Authorisation Matters for Landlords and Letting Agents

Under FCA regulations, anyone providing mortgage advice must be properly authorised and registered with the FCA. This includes landlords and letting agents advising tenants or clients on mortgage products, whether directly or indirectly. Providing mortgage advice without authorisation risks enforcement, fines, and reputational damage.

Landlords managing portfolios or involved in property transactions with financing elements must understand and comply with these requirements to avoid regulatory breaches.

Practical Implications Across Landlord Profiles

• Single-Unit Landlords: If you occasionally guide tenants or peers on mortgage options, avoid giving regulated advice unless authorised. Instead, refer clients to FCA-authorised mortgage advisers.
• HMO and Portfolio Landlords: Larger landlords often have property management teams or agents who might interact with tenants on mortgage matters. Training teams on FCA compliance and verifying adviser status is essential.
• Accidental Landlords: Those new to letting may unintentionally provide mortgage guidance. Awareness of FCA rules is critical to prevent inadvertent breaches.

Letting agents acting as intermediaries should confirm their FCA authorisation if providing mortgage advice and stay informed of register changes.

Steps Landlords and Agents Should Take Now

1. Verify FCA Status: Check the FCA register (https://register.fca.org.uk/) for any firm or adviser you work with or plan to engage.
2. Review Internal Procedures: Audit your compliance processes to ensure mortgage advice given by your team or partners is authorised.
3. Educate Your Team: Provide training to property managers and staff on FCA rules and the risks of unauthorised advice.
4. Monitor FCA Updates: Establish a regular schedule (e.g., quarterly) to review FCA register changes, focusing on mortgage advice firms.
5. Refer Appropriately: When uncertain, direct tenants or clients to FCA-authorised mortgage advisers.

Benchmarking Compliance Locally

While FCA data is national, London landlords can:

• Check local letting agents' FCA registration status.
• Engage with landlord forums or trade bodies for compliance updates.
• Consult specialists experienced in FCA compliance for the London property market.

How Rentals & Sales Can Support You

Rentals & Sales offers tailored compliance audits and portfolio reviews to help you confidently navigate FCA regulations. Our services include:

• Reviewing your mortgage advice practices and FCA registration status.
• Delivering staff training on mortgage advice compliance.
• Assisting in developing workflows to ensure ongoing FCA adherence.

Contact us to schedule a compliance consultation or portfolio review.

Compliance Disclaimer: This article provides general information and is not legal advice. Landlords and letting agents should consult qualified legal or compliance professionals for advice specific to their circumstances.