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
First-time buyers struggle with strict affordability rules
Self-employed face extra hurdles proving income
1 in 5 over-55s still have a mortgage (more2life)
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
