FCA sets out roadmap for mortgage rule reforms

The FCA has published a roadmap on modernising mortgage rules.

The FCA launched a discussion paper in June 2025 on areas in which changes could be made to the current mortgages framework. It now publishes its feedback statement to that review and outlines actions it will take as part of its longer-term plan to modernise the system.

The roadmap focuses on 4 areas:

• First-time buyers and underserved consumers – simplifying the rule to allow more flexible products that reflect different working patterns and income levels.
  • The FCA anticipates consulting on LTI ratio requirements (with the PRA) and responsible lending rules in H1 2026, with feedback and policy statements to follow in H2.
• Later-life lending – reviewing retirement interest-only (RIO) requirements for accessibility, and exploring ways to improve advice to help people plan for later in life. The FCA will also conduct a focused market study to ensure this part of the market can meet the changing needs of future customers.
  • In connection with its work on responsible lending, the FCA anticipates consulting on affordability for RIO mortgages in H1 2026, with a feedback and policy statement to follow in H2.
  • The FCA will conduct its focused market study through 2026, and may publish a holistic advice consultation in H1 2027 before its feedback and policy statement in H2 2027.
• Innovation and disclosure – encouraging data and technology use, and looking at ways to make advertising and disclosure rules simpler.
  • The FCA’s current Open Finance TechSprint on mortgages will run until February 2026. The first cohort of participants in its Supercharged Sandbox – concerning the discovery and experiment phase of firms’ AI product’s development – also includes a mortgage use case.
  • It will also conduct a review of Consumer Duty requirements on disclosure, and disclosure research and policy development from Q2 to the end of 2026. The latter may be followed by a consultation on the disclosure framework in H1 2027, with a feedback and policy statement to follow in H2 2027.
• Protecting vulnerable consumers – working to support people affected by financial abuse and help those using a mortgage to manage or consolidate debts.
  • The FCA may consult on debt consolidation in H1 2027, with a feedback and policy statement to follow in H2 2027.