On 20 March 2026, the Financial Conduct Authority (FCA) published the terms of reference for its market study into later life mortgages.

Background

The FCA explained that it’s launching a market study to examine whether change is needed to enable the lifetime and retirement interest only mortgage sector to meet consumers’ changing needs.

Summary

The FCA highlighted that this market study will investigate challenges in this market, including:

  • Understanding if the market can and will develop to meet the increased and differing needs of consumers in the future.
  • Considering how the FCA can help it adapt and that, where change is needed, the FCA will focus on implementing solutions that let consumers easily access products and services which meet their needs and provide fair value.
  • Considering whether action may be needed outside of the FCA’s remit and that it may make recommendations to other bodies, where relevant.

Next steps

The FCA expects to publish a progress update and proposed next steps by the end of 2026 and that it is inviting all stakeholders to share their views on the issues set out in these terms of reference, including supporting evidence where relevant, by 17 April 2026.