15 December 2025
“The FCA’s roadmap is ambitious and welcome but can only work in parallel with a government committed to overcoming the UK’s deep-rooted housing challenges. Even with more flexible lending approaches, limited housing stock will continue to be a major brake on homeownership. Without sustained supply-side action, the benefits of regulatory innovation will be constrained, particularly for first-time buyers facing intense competition for too few properties.
“That said. the regulator is right to explore more proportionate rules around high loan-to-income lending, interest-only structures and recognition of rental payment history. These changes could make a real difference for people who have long demonstrated affordability through high rents but remain shut out of the mortgage market. However, a more permissive regime brings more complexity, and the FCA is clear that robust advice and support structures must develop in parallel to protect consumers from foreseeable harm.
“The most striking part of the roadmap is the renewed focus on advice. Many consumers will soon be navigating choices that span mainstream mortgages, retirement interest-only products and lifetime mortgage options, often for the first time. The FCA acknowledges that the current advice landscape is too fragmented, with regulatory silos making it difficult for people to receive truly holistic help on how their mortgage fits into their wider financial life. Its intention to explore more unified advice models and realistic affordability assessments, particularly for older borrowers, is therefore a crucial step.
“Demand for later-life lending will grow sharply as more people reach retirement still carrying mortgage debt due to higher house prices. A market that is already limited in size and scope will need to expand and deliver clearer communication if it is to meet that demand. Advisers will play a vital role in helping people understand when products like RIOs, lifetime mortgages or downsizing may be appropriate, and in ensuring consumers appreciate the long-term implications of using their housing wealth to support their retirement. This is not a new area of advice but it will become ever more the mainstream.”
“It is also encouraging to see the FCA embracing the opportunities presented by open finance, AI and improved data sharing. These tools can help advisers deliver personalised recommendations efficiently at scale, provided human judgement remains firmly at the centre of the process. Technology can enhance the advice process, but it cannot replace the trust and accountability that consumers rely on when making major financial decisions.
“Ultimately, the FCA has laid the foundations for a more flexible and modern mortgage market, but the success of this roadmap will depend on collaborative action across the industry and government. Better-quality advice, improved customer support, and meaningful progress on housing supply must go hand in hand if we are to widen access to homeownership in a way that is both safe and sustainable.”
