- The Financial Conduct Authority (FCA) has confirmed simplified mortgage rules aimed at making it easier for homeowners to remortgage or reduce their loan terms.
- The FCA is removing guidance that has “served its purpose”, which is intended to reduce the regulatory burden on financial firms and allow borrowers to shorten their mortgage terms more easily.
- The requirement for a full affordability assessment will be lifted when a borrower seeks to reduce their mortgage term, though lenders are still expected to consider affordability diligently.
- These changes are anticipated to make it simpler for consumers to switch to new lenders for remortgaging, potentially allowing them to access cheaper products and improve their choices.
- The FCA stated these reforms support economic growth, help consumers save time and money, and encourage innovation in the mortgage market, while ensuring strong consumer protections remain in place.
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