Lenders across the UK mortgage market predicted that regulatory scrutiny would ease in 2026, research from Target Group found.
The survey took place at the Future of Mortgage Servicing conference at the Belfry, hosted by Target Group and Phoebus Software.
35% of lenders expected scrutiny to ease in 2026, and the same percentage thought nothing would change, while the rest said they thought it would intensify.
Pete O’Connor (pictured), CEO of Target Group, said: “Recent discussions have explored the balance between robust regulation and access to lending.
“Those policy debates are ongoing with some proposals suggesting a potential rollback of post-financial crisis mortgage rules to boost homeownership and economic growth.
“The drivers behind the proposed changes to mortgage rules must be balanced against the need to protect consumers and maintain financial stability.”
O’Connor added: “Consumer Duty remains central to our thinking and any relaxation must not compromise borrower outcomes or data integrity.
“Collaboration between regulators, lenders and tech providers will be key to balancing access with stability.
“Rolling back post-financial crisis regulation could see riskier lending and one potential outcome is greater arrears and, ultimately, a rise in the number of possessions.”
He said: “Collections teams will need to be strengthened in terms of headcount and technological sophistication.
“As a servicing partner, we see the sector’s need for agile systems – platforms that are capable of adapting to these shifts in scrutiny – is set to grow.”
