The Financial Conduct Authority has confirmed a package of mortgage rule changes designed to simplify requirements and increase flexibility, with the stated aim of making it quicker and cheaper for borrowers to adjust their mortgages and access competition in the market. The changes are intended to make it easier for borrowers to shorten their mortgage term, remortgage with a new lender to access cheaper products, and discuss options with their existing provider and obtain advice when needed. The FCA expects many consumers will continue to benefit from regulated mortgage advice and expects lenders to consider what is appropriate to identify borrowers who need advice or other support. It is also removing guidance that it considers has served its purpose, to reduce regulatory burden, and notes that the flexibilities are voluntary for firms. The measures form part of the FCA’s wider Mortgage Rule Review, set out in PS25/11, and sit alongside a public discussion on the future of the mortgage market with feedback invited until 19 September 2025.
Financial Conduct Authority 2025-07-21
Financial Conduct Authority confirms simplified mortgage rules to make term changes and remortgaging easier
The Financial Conduct Authority (FCA) confirmed mortgage rule changes to simplify requirements and increase flexibility, making it quicker and cheaper for borrowers to adjust mortgages. The changes facilitate term shortening, remortgaging for cheaper products, and obtaining advice, while removing outdated guidance to reduce regulatory burden. These measures are part of the FCA's broader Mortgage Rule Review outlined in PS25/11.