Your Mortgage sister title Mortgage Solutions asked Martin Wheatley, chief executive of the Financial Conduct Authority, following its annual public meeting, if unintended consequences of the MMR such as strict affordability checks treat customers fairly.

Wheatley said: “While a lot of firms did get their operating systems up to speed in time for the MMR, I’ve heard all the stories, and more, of firms which aren’t quite getting it right, that are being too granular and being too assiduous.

“When we hear that we go back and have that discussion with the firm. Those issues are being ironed out.”

Mortgage Solutions asked Wheatley if the Lloyds Banking Group (LBG) decision to only offer fixed rate mortgage products in its branches was a further example lenders reacting to the MMR in way in which the regulator had not intended.

Lloyds said the decision was because its tracker products were no longer competitive compared to its fixed rate products and the move was not linked to the MMR.

Wheatley said there had been a desire from mass market providers to simplify their offering so that it can be sold by the people in their branches.

Wheatley said recent lender actions were ‘teething problems’ not unintended consequences.