The FCA has issued an update on proposed changes to mortgage rules, specifically around new borrowers and the need to support first-time buyers as well as underserved groups. The changes are expected to come into effect in 2026.
What’s happening?
The FCA has confirmed it is intending to speed up measures to help first-time buyers onto the property ladder and to better help customer groups that have traditionally been underserved. These areas have been flagged by FCA compliance consultants such as //www.adempi.co.uk.
The FCA has also investigated other areas and found that there’s a need to provide more holistic advice to customers when they are planning for later life finances. Policy development across all key areas is going to begin next year, with the plan to continue during 2027.
The need to support underserved groups
The FCA reported that there was a broad agreement that a number of first-time buyer groups could be better supported to get onto the property ladder, including those who cannot secure a big deposit, who do not have private help from families, who have irregular income, are self-employed, or who are dealing with a negative life event.
Other groups that may need attention include customers who have income and assets from overseas or who are getting back onto a firm footing after an issue with their credit rating.
There are suggestions that regulatory changes may be needed, as well as updates to existing frameworks. For example, alternative data could be used, such as broader income sources and rental payment histories.
