The Financial Conduct Authority (FCA) closed its consultation on plans to simplify mortgage rules today, 4th June 2025.
The review, set out in CP25/11, proposed making it quicker and easier for people to switch mortgages, reduce their borrowing term or discuss their options with lenders.
The aim is to remove outdated guidance, cut red tape and help consumers get better mortgage deals.
Michael Shand, managing principal at Capco, said: “The FCA’s review into mortgage rules is a welcome step, making it simpler for many customers to switch to better mortgage deals.
“For those with straightforward, low-risk circumstances, this could mean real savings and a much smoother experience.
“However, simplification must not come at the expense of safeguarding more vulnerable customers or those navigating complex mortgages.”
Shand added: “The simplifications the FCA has proposed will play an important role in helping firms deliver better outcomes, removing the unnecessary friction from the mortgage process and making it easier for customers to access competitive mortgage rates.
“This could save consumers money and improve engagement, particularly for those who may be financially vulnerable or less confident managing their finances.
“Firms must ensure their systems are designed to support all customers, including those who may struggle with digital access, confidence, or understanding.”
He said: “The goal should be to provide a smooth and straightforward experience for everyone regardless of individual circumstances.
“This review also provides an opportunity for firms to rethink how they engage with customers across the mortgage lifecycle.
“With simpler switching comes greater responsibility around communication.”
He added: “Firms must ensure customers understand their options, protections and rights, know when and how to act and are supported with clear, timely information.
“The goal should be to deliver smoother journeys without sacrificing clarity or care.”
Additionally, Shand pointed out that a more flexible framework could allow firms to improve how they operate, making internal processes simpler and developing better digital tools and platforms for customers.
However, he said this needs to be matched with accountability, with firms required under Consumer Duty to show that they are delivering good outcomes for all customer groups, including those who may need extra support.
He added that the consultation fits with the FCA’s wider move to improve customer experience and trust, and firms should use this as a chance to help create systems and services that are not just easier to use, but also fairer for everyone.
