The home buyers who could benefit from possible mortgage rule changes
The British financial observer launched a “public speech” for the first time in the future of the mortgage market, the access to buyers, self -employed, and lending to retirement.
The Financial Behavior Authority (FCA) has issued a discussion certificate of discussion that summarizes the potential benefits and risks of the rule changes aimed at supporting wider access to sustainable hosting and encouraging economic growth.
The regulator believes that more flexibility can enable lenders to adapt products to various customer needs more effectively.
FCA is willing to explore how companies can better support groups served by the market, including individuals with variable income and buyers for the first time.
David Geale, Executive Director of Payment and Digital Finance at FCA confirmed the ambition of the regulator: “We want to develop our mortgage rules to help more people achieve their sustainable host.”
The data shows that in 2024, for the first time, two -thirds (68 percent) borrowed 30 years or longer.
The article said: “Many people’s employment patterns in the UK are now very different from the previous generations. Short -term contract, zero -hour contracts and more people have self -employed.”
The regulator wants to feed feedback about both home purchase and later self -employed or variable income in life to support mortgage access.
FCA is also looking for an opinion on whether the stress test needs to be changed for mortgage. The stress test requires that lenders take into account the potential impact of future changes in interest rates to ensure that a debtor can meet the mortgages of a debtor.
Companies have been made responsible for determining stress rates, but the article suggested that a central stress rate could be determined by updating a forecast model regularly.
However, this proposal, including the elasticity of adaptation of tests to different products, including companies, including some disadvantages, he said.
The document has also attracted more and more attention to reach home owners to help finance through retirement.
“Access to mortgages can be the key to helping people to achieve their financial goals in later life”.
Many loans will accept the income earned up to 75 years of age in purchasing assessments.
However, the article said that some products adapted to old borrowers can usually be more expensive than standard mortgages and may not know all the options available for older people.
FCA said he wanted to help ensure that his rules do not create an obstacle for innovative products.
For example, self -release products, which allow borrowers to be withdrawn not collectively, can be a costly option for some people who do not have a reliable income in retirement.
Among the other points of discussion in the comprehensive article, whether the regulator will interfere with the receipt of long -term fixed ratio to support the receipt; Whether a rent -based purchase assessment is a responsible basis for assessing a possible mortgage repayment ability of a consumer; And whether the regulator will only take more steps to support the mortgages of partially partially interest and partial capital repayment (partially and partially ”).
The regulator only wants to feed feedback on whether the changes in the provisions of interest mortgage for the first time can help buyers.
He also wants to know if more can be done to support the survivors of economic abuse, which is a common mortgage with abuse.
FCA also looks at the mortgage market whether there is any regulatory intervention that can help to address climate change difficulties.
According to FCA, there are about 8.96 million mortgages in the UK and 3.6 million rental households aiming to buy a house in the future.
After the 2008 financial crisis, lending rules hardened. FCA said that this has led to a more flexible market that this debtor debtor and more than 99 percent of mortgages since 2014.
“However, this more cautious approach may have unnecessarily restricted the access of the consumer to the market. As housing prices grow much faster than wages, hosting has become an increasingly difficult request for many people without financial support.
“Increased number of consumers have difficulty in meeting purchasing criteria, accessing a mortgage, and consequently having a host.”
While the regulator can change the future rules, the market will continue to be at the center of the approach of the consumer mission, which requires the surveillance and monitoring of the market and put consumers in the heart of what they do.
He said that he will continue to have high standards and closely monitor the tendencies.
Regulator, among those interested in the article, mortgage lenders, intermediaries, trade bodies, consumer groups, landlords and people aiming to be a host, he said.
The feedback will be closed on September 19. The regulator said it would focus on how to protect consumers and the market before proposing any rules change.
