Michael Shand, Managing Principal at consultancy Capco, says the FCA’s mortgage rule review could unlock fairer access to home loans for today’s diverse borrowers — but warns lenders must balance innovation with responsibility.
Michael Shand, Managing Principal at consultancy Capco, comments on the FCA’s discussion paper reviewing mortgage rules, which closes to input today:
“The FCA’s review of mortgage rules recognises the need for lending to adapt to current borrower profiles. With more people self-employed, borrowing later in life or pursuing portfolio careers, the regulator’s proposals could make access to mortgages fairer and more practical for a diverse consumer base.
“The potential impact is significant. Simpler rules and reduced advice requirements in low-risk cases can make it easier for people to buy their first home or progress through different stages of ownership. Lenders also have an opportunity to use data and technology to design products that reflect modern borrowers.
“Greater flexibility does create added complexity. Lenders will need to balance innovation with responsibility, ensuring that more personalised products remain robust if economic conditions change. Done well, the FCA’s reforms could pave the way for a more inclusive and innovative mortgage market.”
