The Financial Conduct Authority (FCA) has closed its consultation on proposed changes to UK mortgage lending rules today. This marks the final opportunity for the industry to provide feedback before the regulator considers its next steps.
The proposals are designed to make mortgages more accessible by allowing lenders greater flexibility in assessing affordability. This could particularly benefit first-time buyers, self-employed individuals, and older applicants.
Among the changes being considered are measures to support borrowers with variable incomes and improve access for those paid in foreign currencies. The FCA also aims to encourage lenders to assess affordability based on a customer's current financial position, rather than focusing on isolated historic credit issues.
Tom Eyre, chief executive and co-founder of Loqbox, stated that while the proposals represent progress, they address only part of the challenge. He argued that earlier support for consumers to build stronger credit profiles is also needed to reduce the risk of affordability problems.