FCA proposes mortgage rule reforms to expand access
FCA proposed mortgage rule changes giving lenders flexibility for first-time buyers, older borrowers and self-employed applicants.
The FCA is proposing reforms to allow more flexible repayment structures and affordability assessments while maintaining consumer protections. Lenders will need to reassess product design, credit risk frameworks and Consumer Duty alignment as the rules evolve.
Reshapes UK mortgage underwriting standards, affordability frameworks and product governance for retail lenders.
Action Required
Review mortgage underwriting policies, affordability models and product design against proposed FCA flexibilities.
Material change to UK mortgage market rules affecting all retail mortgage lenders.
Monitor FCA consultation on mortgage reforms; assess impact on affordability models, product governance and Consumer Duty obligations for retail mortgage portfolios.
“FCA sets out next steps to help reform the mortgage market, giving lenders more flexibility for first-time buyers, older borrowers and the self-employed while maintaining strong consumer protections.”
Published: 2026-06-15