The Financial Conduct Authority (FCA) has launched a consultation aimed at simplifying mortgage rules, making it easier, faster, and more cost-effective for borrowers to manage their home loans.
The regulator says the proposals will offer greater choice for consumers by allowing more flexibility in how they interact with mortgage providers.
Under the plans, borrowers will find it quicker to discuss options with firms – whether they seek formal advice or prefer to make decisions independently.
The changes would also make it simpler for consumers to reduce the term of their mortgage, potentially lowering total borrowing costs and reducing the risk of repaying debt into later life.
Additionally, the FCA intends to improve access to more affordable mortgage products when customers remortgage, helping households manage costs more effectively.
The move builds on a decade of reforms in the mortgage sector, which have focused on improving lender conduct and fostering a consumer-focused culture.
With the Consumer Duty now in place, the FCA is looking to remove outdated guidance and encourage innovation in the mortgage market.
“We have already reminded firms of the flexibility in our rules to help people access a mortgage,” the FCA said in its statement.
“In June, we will follow this work with a further public discussion on the future of the mortgage market.”
That discussion will explore themes such as responsible risk-taking, alternative approaches to affordability testing, innovation in mortgage products, and lending into later life.
Emad Aladhal, director of retail banking at the FCA, said: “Our strategy aims to deepen trust and rebalance risk to support growth and improve lives.
“That’s why, with the Consumer Duty now in place to maintain high standards, we want to make it easier, faster and cheaper for borrowers to access and make changes to their mortgage.”
Charles Roe, director of mortgages at UK Finance: “We welcome the FCA’s consultation to review some of its existing mortgage rules and remove outdated guidance.
“The proposals should prove beneficial for those looking to remortgage or reduce their mortgage team.
“The changes will help drive the Government’s growth agenda in a way that benefits our members, and their mortgage customers.”
