Michael Shand, Managing Principal at consultancy Capco comments on the FCA’s consultation on simplifying mortgage rules, which closes today (4th June 2025).
“The FCA’s review into mortgage rules is a welcome step, making it simpler for many customers to switch to better mortgage deals. For those with straightforward, low-risk circumstances, this could mean real savings and a much smoother experience. However, simplification must not come at the expense of safeguarding more vulnerable customers or those navigating complex mortgages.
“The simplifications the FCA has proposed will play an important role in helping firms deliver better outcomes, removing the unnecessary friction from the mortgage process and making it easier for customers to access competitive mortgage rates. This could save consumers money and improve engagement, particularly for those who may be financially vulnerable or less confident managing their finances. Firms must ensure their systems are designed to support all customers, including those who may struggle with digital access, confidence, or understanding. The goal should be to provide smooth and straightforward experience for everyone regardless of individual circumstances.
“This review also provides an opportunity for firms to rethink how they engage with customers across the mortgage lifecycle. With simpler switching comes greater responsibility around communication. Firms must ensure customers understand their options, protections and rights, know when and how to act and are supported with clear, timely information. The goal should be to deliver smoother journeys without sacrificing clarity or care.
“Crucially, a more flexible framework opens the door for innovation in how firms operate, from streamlining internal processes to creating better digital tools and more user-friendly platforms. But this simplification must go hand in hand with accountability. Under Consumer Duty, firms must demonstrate they are delivering good outcomes across all customer groups, which means tracking, monitoring, and tailoring support for those who may not engage as easily or confidently.
“Ultimately, this consultation aligns with the FCA’s broader shift toward improving customer experience and trust. Firms should take the opportunity to contribute and focus on designing systems and services that are not only easier, but fairer too.”
