On 15 December 2025, the Financial Conduct Authority (FCA) published a feedback statement (FS25/6) setting out its response to feedback received on the future of the mortgage market, and action it intends to take to modernise its mortgage rules.

Background

In June 2025, the FCA published Discussion Paper 25/2 in which it considered areas where changes may be needed to support sustainable home ownership and economic growth, and where increased flexibility could allow firms to tailor their product offerings to consumers’ evolving needs.

The FCA explains that FS25/6 sets out its response to feedback to that discussion paper and the action it will take as part of a longer-term plan to modernise mortgage rules.

Summary

The FCA highlighted, considering feedback received from stakeholders, that it will focus on four areas:

  • First-time buyers and underserved consumers: Targeted reforms to help different consumers achieve homeownership, including simplifying mortgage rules to allow more flexible products that reflect different working patterns and income levels at different stages of life.
  • Later-life lending:  Ensuring access and readiness of the market to meet growing demand, including reviewing retirement interest-only requirements to make them more accessible, exploring ways to improve advice to help people confidently plan for later life, and conducting a focused market study to ensure the lifetime mortgage market can meet the changing needs of future customers.
  • Innovation and disclosure: Modernising regulation to enable innovation and improve digital journeys, including by encouraging the use of data and technology, such as AI, to help brokers give better and faster advice while keeping a human touch and looking at ways to make advertising and disclosure rules simpler, so consumers can understand information online more easily.
  • Protecting vulnerable consumers: Ensure the protection of vulnerable consumers and address emerging risks, including by working with partners to support people affected by financial abuse and help those using a mortgage to manage or consolidate debt.

Next steps

The FCA set out that it will bring forward proposals to support first-time buyers and underserved consumer groups in 2026 and that policy development on all themes will commence by the end of 2026 continuing through 2027.

In addition, the FCA further sets out that proposals to update its mortgage standards as part of wider, cross-cutting policy initiatives may also take place during this period.