The regulator will be looking at the potential of updating its responsible lending rules to allow for wider access to 'sustainable home ownership' as well as rebalancing the collective risk appetite in mortgage lending. Other areas it will focus on including making sure the regulatory framework and mortgage market are prepared for future increases in later life lending demand.
It also says it will look to introducing more flexibility to allow lenders to innovate.
In May, the regulator announced that it would be consulting on proposals for consumers to more easily make certain changes to their mortgage and engage with their provider.
This work to reform mortgage rules was included in the FCA’s new strategy, which commits the regulator to helping consumers navigate their financial lives and help growth. The measures were also included in a letter to the Prime Minister, which detailed changes to support economic growth.
As part of this work, the FCA has talked to firms about the flexibility already available when checking if someone can afford a mortgage, which the regulator says has alrady helped more borrowers access mortgages.
Feedback on the discussion paper will close on 19 September.
David Geale, executive director for Payments and Digital Finance, said:
“We want to evolve our mortgage rules to help more people access sustainable home ownership. Having achieved higher standards in the market, now is the time to consider allowing more flexibility in a trusted market.
“Changing our mortgage rules could make it easier for people to get onto the property ladder and manage mortgages into retirement.
“We can’t solve all the issues related to home ownership. But we’re playing our part in helping people better use the mortgage market to navigate their financial lives and to encourage a dynamic, innovative and competitive market.”
