Britain's Financial Conduct Authority (FCA) has launched a consultation on simplifying mortgage rules, aiming to make it "easier, faster and cheaper" for borrowers to make changes to their mortgages.
The proposals form part of a wider strategy to stimulate demand in the £235 billion mortgage market and help maintain London's position as Europe's leading financial hub.
"We want to make it easier, faster and cheaper for borrowers to make changes to their mortgage," the FCA said in a statement on Wednesday. "Doing so will help consumers better navigate their financial lives and support growth, both priorities in our new strategy."
The watchdog is facing pressure from the government to streamline financial regulations where possible to help British financial institutions compete more effectively with international rivals.
Emad Aladhal, director of retail banking at the FCA, said: "Our strategy aims to deepen trust and rebalance risk to support growth and improve lives. That's why, with the Consumer Duty now in place to maintain high standards, we want to make it easier, faster and cheaper for borrowers to access and make changes to their mortgage."
The proposed changes aim to provide greater choice for consumers by making it quicker and easier to discuss options with firms while maintaining access to advice when needed. The FCA also wants to simplify the process for consumers to reduce their mortgage term and access cheaper products when remortgaging.
The regulator has already reminded firms of flexibilities within existing rules to help people access mortgages and plans to follow this work with a further public discussion on the future of the mortgage market in June.
This future discussion will explore risk appetite, alternative affordability testing, product innovation, lending in later life and consumer information needs.
The consultation forms part of nearly fifty commitments outlined in the FCA's letter to the Prime Minister, aimed at supporting growth in the UK economy.
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