Among other things the FCA’s web page notes that the regulator’s engagement with mortgage lenders identified a number of themes that firms may wish to consider:
- Many firms are reflecting on how flood risk and other climate-related risks could affect lending decisions, property values and customer outcomes.
- They are also considering how changes in the availability and affordability of property insurance could affect future mortgage lending. This includes having regard to Flood Re’s scheduled expiry in 2039, and the increasing number of properties built since 1 January 2009 that do not qualify for the scheme.
- Some firms are exploring how greater household resilience could be supported where demand for adaptation finance and uptake of flood resilience measures remain limited. Incentives may be available at no cost to the homeowner but are still not taken up, potentially reflecting a low awareness of flood risk and the options that are available to address it.
- Mortgage lenders should be mindful of their obligations to deliver good outcomes under the Consumer Duty. Outcomes monitoring should be a key source of intelligence and should be used to help identify emerging issues.