The Financial Conduct Authority (FCA) as launched a consultation aimed at simplifying the rules governing the UK mortgage market. 

According to the regulator, the initiative is intended to make it easier, faster and more cost-effective for consumers to adjust their mortgage arrangements. 

The FCA noted the proposed changes form part of its broader strategy to help consumers better navigate their financial circumstances and support economic growth.  

The consultation is focused on giving consumers more flexibility and choice, while maintaining access to advice when needed. 

According to the regulator, the new proposals would make it quicker and easier for borrowers to explore their options with mortgage providers.  

This includes simplifying the process for reducing mortgage terms—potentially lowering the total cost of borrowing and mitigating the risk of repayments extending into later life.  

The measures would also facilitate access to cheaper products when remortgaging. 

The FCA said it has worked over the past decade to raise conduct standards and improve culture among mortgage lenders.  

With the introduction of the Consumer Duty, which sets clearer and more current expectations for firms, the FCA aims to eliminate outdated guidance and create space for further innovation. 

The watchdog noted that it has already reminded firms about existing flexibility within its rules to support consumer access to mortgages. 

A broader public discussion on the future of the mortgage market is expected to follow in June. This will examine issues such as risk appetite, affordability testing, lending into later life, and the information needs of consumers. 

FCA retail banking director said Emad Aladhal: “Our strategy aims to deepen trust and rebalance risk to support growth and improve lives.” 

“That’s why, with the Consumer Duty now in place to maintain high standards, we want to make it easier, faster and cheaper for borrowers to access and make changes to their mortgage.” 

Last month, the FCA began seeking feedback from firms on its upcoming live AI testing service, set to launch in September 2025, to help businesses implement AI in a safe and responsible manner.