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The Financial Conduct Authority (FCA) has launched a consultation aimed at simplifying mortgage lending rules, with a view to making it easier, faster, and more cost-effective for borrowers to manage their home loans.
The regulator wants to offer consumers greater choice by introducing greater flexibility in how they interact with mortgage providers.
The changes would also make it simpler for consumers to reduce the term of their mortgage, potentially lowering longer-term total borrowing costs.
Additionally, the FCA intends to improve access to more affordable mortgage products when customers remortgage, helping households manage costs more effectively.
The FCA will accept comments until 4 June, and then plans to publish a policy statement in the third quarter of this year,
Emad Aladhal, director of retail banking at the FCA, 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.”
Charles Roe, director of mortgages at UK Finance, commented: “We welcome the FCA’s consultation to review some of its existing mortgage rules and remove outdated guidance.
“The proposals should prove beneficial for those looking to remortgage or reduce their mortgage team.
“The changes will help drive the government’s growth agenda in a way that benefits our members, and their mortgage customers.”
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