The Financial Conduct Authority is consulting on steps to make it easier, faster and cheaper for borrowers to make changes to their mortgage.
Through its mortgage rule review, the regulator is considering how it can simplify its mortgage framework to support sustainable home ownership.
According to the consultation paper, published today (May 7), the City watchdog wants to make it easier for consumers to speak to a mortgage provider about their needs, reducing their mortgage term and remortgaging with a new lender.
The FCA said it wants consumers to have more choice in how they deal with their mortgage.
Its changes aim to make it easier for consumers to engage with their mortgage provider without the firm having to provide mortgage advice when not needed.
As well as make it easier to reduce mortgage terms, lowering the total cost of borrowing and reducing the balance of mortgage debt taken into later life and accessing the cheapest products when remortgaging.
“We also want to make mortgage regulation simpler, reducing the different sources firms have to check to understand our regulatory expectations,” the FCA said.
The regulator said it would evaluate the success of the proposed changes through its supervision of firms and monitoring regulatory returns, including complaints data.
It said it may also carry out consumer research or work with firms to assess the impact of changes they may make, including on good and poor customer outcomes.
The FCA revealed it would be launching a public discussion on the future of the mortgage market in June 2025, which would consider what the market needs to deliver for different consumers at different stages in their lives and for the wider UK economy.
Mortgage lenders and administrators, home purchase providers and administrators as well as mortgage intermediaries are being urged to read the consultation and provide feedback by June 4 2025.
It is also proposing to retire two pieces of non-handbook guidance which it believes have fulfilled their purpose.
Emad Aladhal, director of retail banking said: “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.”
alina.khan@ft.com
