The Financial Conduct Authority (FCA) has closed its consultation on the review of mortgage rules today, 19th September, following the publication of its discussion paper on 25th June 2025.
The paper asked for views on changes to support sustainable homeownership and economic growth, including reviewing responsible lending rules, preparing for higher demand in later-life lending, and offering more flexibility for firms to meet customer needs.
The review also looked at rebalancing risk in mortgage lending.
The consultation was aimed at lenders, later life and equity release firms, home purchase providers, intermediaries, trade bodies, consumer groups, and people looking to buy a home with a mortgage or release equity in later life.
Jonathan Stinton, head of intermediary relationships at Coventry for intermediaries, said: “It’s good to see the regulator recognising that the pendulum may have swung too far since 2008, and that a more balanced approach is needed.
“These proposals are a shift to recalibrate the industry in a sensible way, and that’s ultimately good news for borrowers.
“Revisiting the approach to remortgaging could make it far more accessible, and giving borrowers easier access to interest-only and part-and-part options means they can better adapt to life’s ups and downs – whether that’s fluctuating income or planning for later life.”
Stinton added: “Of course, regulatory measures are just one piece of the puzzle.
“There is a risk that loosening affordability rules could fuel house price inflation rather than widen access to homeownership.
“Until the housing shortage is addressed, changes to affordability and product design will only go so far.
“If we want to build a more sustainable, accessible market, any reforms must go hand in hand with a meaningful push towards housebuilding.”
He said: “Whatever changes come, brokers will remain central to helping clients make sense of their options.
“Their role in guiding people through product transfers, remortgages and all the complexity in between is essential.
“By helping borrowers navigate these changes, brokers can make sure people don’t just access products more easily, but they’re choosing options which truly support their long-term goals.”
