The FCA is continuing its mortgage rule review with a discussion paper on the future of the mortgage market, following a call for evidence on the interest rate ‘stress test’ rule and consultation on simplifying mortgage rules and increasing flexibility.
The discussion paper considers areas that may require change in order to support sustainable home ownership and economic growth, and where flexibility could allow providers to tailor product offerings to consumer needs, including:
- Revising responsible lending rules to support wider access to sustainable home ownership;
- Ensuring the regulatory framework, and the market, are prepared for anticipated increases in demand for later-life lending;
- Introducing more flexibility to promote consumer understanding, information needs and innovation; and
- Rebalancing the collective risk appetite in mortgage lending including trade-offs and risk that this could lead to.
The consultation closes on 19 September 2025.