The Financial Conduct Authority in the UK has proposed changes to mortgage rules that could make borrowing easier for first-time buyers, older applicants and self-employed workers.
The measures are designed to allow lenders greater scope to take account of personal circumstances when assessing applications, while retaining consumer safeguards.
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Among the planned changes are steps to lower obstacles for lenders offering repayment options suited to people with uneven income, including self-employed borrowers, as well as those earning in a foreign currency.
The FCA wants lenders to judge affordability using a borrower’s complete and up-to-date financial position, rather than ruling out applicants because of small or historic credit issues.
Another proposal would revise affordability guidance for retirement interest-only mortgages, with the aim of making it simpler for older homeowners to release value from their property.
The regulator is also seeking to amend rules covering interest-only and part interest-only loans, giving lenders more discretion while still expecting most borrowers to have a defined repayment strategy, except where the loan amount is smaller.
The proposals form part of the FCA’s broader programme on consumer finance and economic growth. In December 2025, it published plans for mortgage market reforms intended to reflect current consumer needs more closely.
The FCA said standards in the mortgage sector have been strengthened over time, including through the Consumer Duty. It said the latest proposals would build on that framework by shifting the balance of risk to expand access to mortgages while preserving suitable protections and helping consumers understand their choices.
The consultation is open until 28 July 2026.
FCA payments and digital finance executive director David Geale said: “We’re living longer and how many people work has changed. Our mortgage rules need to keep pace so those who can afford to repay can borrow. Stronger protections mean we can now safely widen access to mortgage borrowing for those that may be underserved.”
