On 31 July 2025, the Prudential Regulation Authority (PRA) published Discussion Paper 1/25 – Residential mortgages: Loss given default and probability of default estimation (DP1/25).
Purpose
The purpose of DP1/25 is to open a discussion with industry on how to make it easier for mid-sized firms to compete in the residential
On 22 July 2025, the Financial Conduct Authority (FCA) published Policy Statement 25/11: Mortgage Rule Review: First steps to simplify our rules and increase flexibility (PS25/11).
Background
In line with its 5-year strategy the FCA is reviewing its mortgage requirements through the Mortgage Rule Review (MRR).
The first set
On 15 July 2025, the Government published the rules of a new Mortgage Guarantee Scheme (the Scheme) that will be permanently available from July 2025. The Scheme is aiming to incentivise and sustain availability of 91-95% loan-to-value mortgages by providing participating lenders with a government-backed guarantee, insuring them against a portion of their potential
On 9 July 2025, the Prudential Regulation Authority (PRA) released a statement on its review of the loan-to-income (LTI) ratio requirements.
Following the Financial Policy Committee’s (FPC) recommendation, the PRA is reviewing the LTI ratio requirements and is offering a modification by consent to disapply the relevant Part of
On 8 July 2025, the Prudential Regulation Authority and the Financial Conduct Authority jointly released a policy statement (PS11/25) providing feedback to the proposed amendments to the PRA Rulebook and FCA Guidance concerning the de minimis threshold for the loan to income (LTI) flow limit in mortgage lending, as consulted on
On 25 June 2025, the Financial Conduct Authority (FCA) published Discussion Paper 25/2 – Mortgage Rule Review: the future of the mortgage market (DP25/2).
Purpose
The purpose of DP25/2 is to launch a public conversation on the future of the mortgage market and sets out a discussion on the trade-offs and
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
On 7 May 2025, the Financial Conduct Authority (FCA) published a consultation paper, CP25/11, on its Mortgage Rule Review: First steps to simplify our rules and increase flexibility.
Background
The FCA flags that various regulatory reforms since the 2008 financial crisis have improved standards across the mortgage market, including the introduction in
On 3 April 2025, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) launched a consultation, FCA CP25/6 and PRA CP6/25, on proposed amendments to the PRA Rulebook and FCA Guidance concerning the de minimis threshold for the loan to income (LTI) flow limit in mortgage
On 18 March 2025, the Financial Conduct Authority (FCA) updated its webpage on the interest rate ‘stress test’ rule – application of MCOB 11.6.18R to note the launch of its call for evidence on MCOB 11.6.18R – Considering the effect of future interest rate rises.
The FCA explains that it is carrying