Potential new mortgage rules could boost home ownership

The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first-time buyers, self-employed, and those borrowing in retirement.

The point of the paper is to spark a public conversation to help those looking to buy their first home to get onto the property ladder, and those in retirement manage their mortgage more effectively, with the goal being to support long-term growth.

The paper looks at possible changes to improve flexibility and allow borrowing to be more accessible by offering tailored products to customers to cater to their specific needs.

Key areas include:

  • Updating responsible lending rules
  • Addressing the growing need for later-life-lending (equity release)
  • Enhancing consumer understanding
  • Encouraging innovation in lending practices

The FCA are looking for thoughts on whether the stress test for mortgages should be changed. They are also looking into the number of homeowners who need to access their housing wealth to help financially support them in retirement.

This could be a positive move by the FCA provided borrowers are not overstretched.

Recent posts

Almost one in five equity release mortgages are now taken out to provide financial support to family.

According to industry data, the expected wait for those looking to buy a property has dropped from just over 11 months to less than six months.

It is common for your first mortgage payment to be higher than your subsequent monthly payments for two reasons.

Firstly, a big congratulations, you’ve now exchanged contracts! After weeks and months of waiting, you are about to move in. What should you do first?

The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.

The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income. 

According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes. 

More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.