Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

FCA Proposes Changes to Widen Mortgage Access for Underserved Groups

The Financial Conduct Authority (FCA) has announced proposed changes to mortgage rules designed to help first-time buyers, older borrowers, and the self-employed access mortgage products. The proposals aim to give lenders more flexibility in assessing individual circumstances, while maintaining strong consumer protections.

The FCA’s plans include reducing barriers for lenders to offer flexible repayments to people with variable incomes, such as the self-employed, and to those paid in foreign currency. The proposals also encourage lenders to assess affordability based on a person’s full and current situation, rather than automatically excluding applicants due to minor or past credit history issues.

For older homeowners, the FCA suggests updating affordability guidance for retirement interest-only mortgages, making it easier for them to unlock wealth built up in their property. Additionally, the FCA proposes updating rules on interest-only or part interest-only mortgages to give lenders more flexibility, while ensuring that most borrowers have a clear plan to repay.

These proposals are part of the FCA’s ongoing work to reform the mortgage market, following plans announced in December last year. The FCA has invited consumers, firms, and interested parties to respond to the consultation by 28 July 2026.

The changes are relevant to UK letting agents and inventory clerks, as they could impact the types of tenants entering the rental market and the ability of renters to transition to homeownership. The proposals may also affect older tenants considering unlocking property wealth and self-employed individuals seeking to move from renting to buying.