Overview
- The UK regulator outlined plans to simplify mortgage rules and broaden access for first-time buyers, self‑employed workers and older borrowers.
- Its reform agenda rests on four pillars: support for underserved buyers, enhancements to later‑life lending, clearer disclosures with scope for innovation, and safeguards for vulnerable customers.
- A focused market study on later‑life lending will begin with terms of reference due in the first quarter of 2026.
- The FCA is considering updates to interest‑only, part interest‑only and low‑start products, including a differentiated affordability approach for certain part interest‑only lending.
- The watchdog will promote use of rental payment data and AI in affordability assessments and advice, while noting that calls for greater risk‑taking could raise consumer harm, such as increased repossessions.