FCA continues mortgage rule review to boost home ownership and support growth

Anything that helps to minimise Generation rent and get people into homes responsibly is a good idea and this review is welcomed. Rather than wrapping people up with cotton wool which stops them owning a home we need greater flexibility. So many people have given up on the prospect to own their home and that needs to change.

The FCA’s review reflects a willingness to modernise lending — and that’s the right move. Demographics are shifting, and the mortgage market needs to shift with them.

The devil will be in the detail. Supporting home ownership and growth is vital, but we can’t compromise financial stability in the process. Regulation needs to evolve, not unravel.

More opportunity for those wishing to get onto the property ladder, with more innovation on how lenders can help. With the widening scope of opportunities potentially available the need for qualified advice and support is vital to get this delivered right and consistently

This is a welcome move from the FCA and one that's overdue. Making lender rules more flexible should help people stuck in rented accommodation achieve their dream of homeownership. The mortgage market is changing, with the average first-time buyer older than they were previously. This review shows that FCA recognises this and is taking action, as a situation where more and more people are locked into renting is unsustainable. However, the review needs to recognise that greater flexibility shouldn't mean lighter regulation. That's still important and shouldn't come at the expense of opening up the market.

It is really interesting to hear the FCA say that the current risk appetite may now be too cautious for the future in some areas, particularly if the aim is to increase access, encourage innovation and support homeownership and financial resilience. Perhaps this paper marks the beginning of a positive change.

The FCA clearly recognises the mortgage market has issues and that it is not working for many people who want to get on the property ladder. It will be interesting to see if the idea of centralising affordability or taking rental payments into account comes into play.

More first-time buyers may well be willing to take longer-term fixes if the affordability calculations worked for them and there was more competition to bring rates down. Interest-only is also useful for some borrowers who need to reduce their costs and lower their monthly repayments for a while.
The question of AI-assisted advice is also interesting, for the moment, speaking to an expert is the best way forward.