FCA publishes discussion paper on the future of the UK mortgage market

The UK Financial Conduct Authority (FCA) has published discussion paper DP25/2 (DP) accompanied by an updated webpage and press release, on the future of the UK mortgage market, as part of its ongoing mortgage rule review. The DP forms part of the FCA's five-year strategy to rebalance risk, support growth and help consumers navigate their financial lives. It outlines potential reforms to improve access to sustainable home ownership, support responsible lending and encourage market innovation.

Key areas under consideration include:

• Updating responsible lending rules to widen access to sustainable home ownership.
• Preparing the regulatory framework and market for the likely increased demand in later life lending.
• Introducing greater flexibility to promote consumer understanding, information needs and innovation.
• Rebalancing the collective risk appetite in mortgage lending.

The deadline for comments is 19 September. The FCA plans to continue stakeholder engagement through a series of meetings. Any proposed changes to rules or guidance will be subject to the usual consultation process in due course.

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