homeowners Ready to benefit from simplified mortgage As a rule Financial conduct authority (FCA) confirms changes designed to make or reduce the terms of the loan easier.
The purpose of the shake-up of the city regulator is Present maximum flexibility and help individuals to manage their financial life better.
A major part of the reform includes the FCA removing the existing guidance which is “to fulfill its purpose”, which is a step to reduce the regulator burden on financial firms.
This adjustment means that the borrower can find simple to shorten their mortgage words, potentially reduce the total cost of borrowing and reduce the risk of repayment spread in retirement.
Seriously, the need for a complete ability assessment will be raised when a borrower wants to reduce his mortgage word.
However, the regulator has insisted that lenders still expect to consider hard work while implementing these new flexible.
The firms maintain a responsibility to work to avoid damage to customers and should continuously monitor and review the results experienced by their borrowers.
People should also be easy to switch to a new lender for removing a new lender, helping them to reach cheap products.
Consumers can see improvement in their choice by permission for simple ability assessment, where a proposed remote is on the same conditions as an existing contract, but is more cheaper than a new deal indicated by the current lender of the customer.
FCA hopes that many borrowers will continue to benefit from regulated mortgage advice.
Lenders are expected to consider what is appropriate to identify consumers who require advice or other support.
Emad Aladal, director of Retail Banking at FCA, said: “We are helping more people navigate their financial life, who can support those who can buy a house and buy support competition in the hostage market.
“Consumer needs have changed in recent years, and our rules are also changing.
“By simplifying some of today’s rules, consumers are supporting development by saving time and development is development and WealthEnsuring that they still benefit from advice where required.
“We want lenders to use these changes to innovate and serve the owners and existing borrowers in a better way.
“These reforms are another important step in our mortgage rule review, which we are distributing quickly.
“They are supported by strong security that we have already placed for consumers in the hostage market.”
The regulator stated that the improvement of the mortgage market is possible due to the continuity of high standards, such as consumer duties, for which the lenders need to keep whatever customers do, as well as support for people in effective ability and financial difficulty.
The FCA’s policy statement said that the regulatory reforms introduced after the 2008 financial crisis have improved the standards in the mortgage market, the overall mortgage arrears and prolonged standards left by the standards.
The regulator said that, while changes are voluntary to firms, support durable home ownership And a competitive mortgage market is a collective responsibility.
Earlier this year, the FCA letter to the Prime Minister Sir Kir Stmper included a change in the mortgage rules. GovernmentThe aim is to support economic development.
As part of its comprehensive mortgage rule review, the regulator has opened a public discussion on the future of the mortgage market.
It is inviting the response till 19 September 2025.
Many lenders have recently enabled some people to borrow more, after clarification from the regulator.
Paul Mathews, Senior Director of Risk at Leading Financial Services Consultancy Broadstone said: “FCA is taking easy steps for consumers to make its changes. Hostage And get better support on their available options.
“Reducing regulation will give lenders more flexibility to innovate in the market.”
