The FCA is looking at loosening regulations around mortgages in response to Keir Starmer’s request for ideas to boost growth
The boss of the UK’s financial services watchdog has pledged to review mortgage lending rules in response to Keir Starmer’s request for ideas to boost economic growth.
Nikhil Rathi, chief executive of the FCA, has written to the prime minister setting out numerous deregulatory proposals.
Among them is a pledge to “begin simplifying responsible lending and advice rules for mortgages”.
It also said it will open a discussion on the balance between ensuring sufficient access to lending and levels of defaults. It has pledged to consult on removing maturing interest-only mortgage and “other outdated guidance.”
The FCA will also work with government to remove “overlapping standards” such as the Mortgage Charter introduced in 2023.
>>See also: The 1.5 million-home question: Does the government’s planning reform programme add up?
Reacting to the proposals, the Home Builders Federation said if the industry is to build the homes we need “it is essential that those who can afford to buy are able to access affordable lending.” It however remains agnostic as to how this increase in availability could be achieved.
A spokesperson for HBF said: “The current lack of affordable mortgage availability is one of the most significant barriers to boosting housing supply and coincides with the first time in 60 years where no government support for first-time buyers exists.
“Without assistance for those entering the market, the lack of buyers will continue to thwart efforts to build more”.
No comments yet