9 June 2026
If you are covering the FCA’s proposed mortgage rule changes, please see the following comment from Karen Noye, mortgage expert at Quilter:
“The proposals from the FCA acknowledge that the mortgage market has failed to keep pace with how people live and work today, and allowing greater flexibility in assessing affordability and repayments could help prospective borrowers who have more complex incomes such as the self-employed. Current affordability assessments can be limiting for those looking to get onto the property ladder, and a shift towards a more holistic approach whereby someone’s full current financial situation is considered, rather than historical credit issues immediately closing the door to homeownership, would be a positive step forward.
“However, there will naturally be a delicate balancing act when it comes to widening access. Looser rules around affordability and lending structures, particularly around interest only offerings or borrowing later in life may help to improve access in the shorter term, but it will be vital that borrowers do not make unsustainable commitments that could impact them further down the line. We have already seen a significant increase in people taking mortgages that they well be paying well into their retirement years, and this risks having a knock-on impact on their financial security and quality of life when more of their income is going on housing costs than they might have planned for.
“Wherever possible, anyone looking to get onto the property ladder or considering making changes to their mortgage repayments should seek the support of a professional mortgage adviser wherever possible. The mortgage market is constantly evolving, so being able to make decisions that are well informed and appropriate for your long term financial security is key.”
