The Financial Conduct Authority (FCA) is considering major changes to responsible lending rules that could make it easier for first-time buyers, self-employed workers, and older borrowers to get mortgages.
Key Proposed Changes
✅ More flexible affordability checks
✅ Easier mortgage access for self-employed applicants
✅ Better support for borrowing into retirement
✅ Encouragement of product innovation
Why This Matters Now
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First-time buyers struggle with strict affordability rules
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Self-employed face extra hurdles proving income
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1 in 5 over-55s still have a mortgage (more2life)
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UK housing crisis leaves many priced out
Who Could Benefit?
| Group | Current Challenges | How Changes Could Help |
|---|---|---|
| First-time buyers | High deposits, strict income multiples | More flexible affordability assessments |
| Self-employed | Harder to prove stable income | Alternative income verification |
| Older borrowers | Age limits on mortgage terms | Longer terms, equity release options |
Industry Reaction
Dave Harris, CEO of more2life
“Later life lending is no longer niche—it’s vital. We need regulatory support for innovation, not friction.”
Jamie Jenkins, Royal London
“With pension under-saving, many will rely on home equity in retirement.”
Pete Maddern, Canada Life
“Housing wealth must be part of retirement planning alongside pensions.”
Potential Risks
⚠ Could looser rules lead to riskier lending?
⚠ Will lenders actually pass on more flexibility?
⚠ How will retirement mortgages be sustainable long-term?
What Happens Next?
🗓 Public consultation open until September 19th
📈 Final rules expected in 2025
🏦 Lenders to adjust products if approved
