UK’s FCA sets out mortgage rule changes aimed at widening access

The Financial Conduct Authority successful the UK has projected changes to owe rules that could marque borrowing easier for first-time buyers, older applicants and self-employed workers.

The measures are designed to let lenders greater scope to instrumentality relationship of idiosyncratic circumstances erstwhile assessing applications, portion retaining user safeguards.

Among the planned changes are steps to little obstacles for lenders offering repayment options suited to radical with uneven income, including self-employed borrowers, arsenic good arsenic those earning successful a overseas currency.

The FCA wants lenders to justice affordability utilizing a borrower’s implicit and up-to-date fiscal position, alternatively than ruling retired applicants due to the fact that of tiny oregon historical recognition issues.

Another connection would revise affordability guidance for status interest-only mortgages, with the purpose of making it simpler for older homeowners to merchandise worth from their property.

The regulator is besides seeking to amend rules covering interest-only and portion interest-only loans, giving lenders much discretion portion inactive expecting astir borrowers to person a defined repayment strategy, but wherever the indebtedness magnitude is smaller.

The proposals signifier portion of the FCA’s broader programme connected user concern and economical growth. In December 2025, it published plans for owe marketplace reforms intended to bespeak existent user needs much closely.

The FCA said standards successful the owe assemblage person been strengthened implicit time, including done the Consumer Duty. It said the latest proposals would physique connected that model by shifting the equilibrium of hazard to grow entree to mortgages portion preserving suitable protections and helping consumers recognize their choices.

The consultation is unfastened until 28 July 2026.

FCA payments and integer concern enforcement manager David Geale said: “We’re surviving longer and however galore radical enactment has changed. Our owe rules request to support gait truthful those who tin spend to repay tin borrow. Stronger protections mean we tin present safely widen entree to owe borrowing for those that whitethorn beryllium underserved.”

"UK’s FCA sets retired owe regularisation changes aimed astatine widening access" was primitively created and published by Retail Banker International, a GlobalData owned brand.

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