On 7 May 2025, the Financial Conduct Authority (FCA) published a speech on ‘Mortgage reform: supporting home ownership in the UK’, delivered by its director of retail banking, Emad Aladhal.
As well as discussing the mortgage market more broadly, Mr Emad introduces the consultation paper launched by the FCA in relation to mortgage reforms, explaining that the proposals are intended to allow lenders greater scope to innovate and develop their own approaches to deliver good outcomes, so that borrowers can make the right choices for their mortgage.
He also provides some information on the discussion paper planned for June 2025 on the future of the mortgage market and conduct regulation, which he says will address several themes including:
- The market’s collective appetite for risk and how to approach managing changes to risk appetite.
- How the FCA can create space for innovation, e.g. through changes to affordability assessments.
- How customers are supported to access the market and make the right choices, e.g. through changes to the disclosure requirements.
- How to ensure preparedness for an increase in demand for later life lending.
Mr Emad also calls on the industry to consider where it can do more to innovate, explore new ventures, and review practices to meet the long-term needs of customers, in order to help generate sustainable growth.