On 7 March 2025, the Financial Conduct Authority (FCA) published a new webpage where it outlines the flexibility for firms in the interest rate ‘stress test’ rule and considers the effect of future rate rises on mortgage affordability.
As interest rates fall, the current market approach to interest rate stress testing may be
On 21 February 2024, the Financial Conduct Authority (FCA) published a webpage outlining its working group on interest-only (IO) mortgages.
The FCA is working with 12 mortgage lenders and administrators to continue its work in the interest-only mortgage market. The group’s primary purpose is to support and inform the FCA’s review of
On 11 December 2023, the European Banking Authority (EBA) published a peer review report on the supervision of creditors’ treatment of mortgage borrowers in arrears under the Mortgage Credit Directive (MCD), which assesses the conduct supervisory approaches of competent authorities in this area.
The review, which was developed in response to
On 19 April 2023, the FCA published a speech by its Director of Retail Banking, David Geale, delivered at the London Institute of Banking and Finance mortgage conference at Congress Centre, London. The speech discusses the FCA’s view of green mortgages.
Mr Geale begins by defining a green mortgage, as a mortgage which includes an
Introduction
On 2 August 2022, the Financial Conduct Authority (FCA) released its latest statement on switching in the mortgage market.
Among other things the statement notes that the number of mortgage borrowers not switching their mortgage deal, when they could save money by doing so, has declined significantly since 2016. Given the rising
On 29 June 2022, the FCA published its Dear CEO letter setting out its supervisory strategy for lifetime mortgage providers.
The FCA has reviewed the key risks of harm for lifetime mortgage providers, their consumers and the markets in which they operate as part of its approach to supervision. This follows a previous review, and
On 23 June 2022, the European Banking Authority (EBA) published an Opinion and Report in response to the European Commission’s call for advice (CFA) on the review of the Mortgage Credit Directive (MCD).
The CFA covered 17 questions across 7 topical areas, which were the evaluation of the MCD, digitalisation, ways to facilitate the cross-border
On 20 June 2022, the Bank of England confirmed that it will be withdrawing its mortgage affordability test recommendation. The withdrawal will come into effect from 1 August 2022.
The mortgage affordability test was introduced in 2014 to guard against a loosening in mortgage underwriting standards and a material increase in household indebtedness. The test
On 11 March 2022, the FCA published a letter (dated 15 February 2022) which it sent to firms in its retail mortgage lenders (RMLs) portfolio.
The letter sets out:
On 11 March 2022, the FCA published a letter (dated 11 March 2022) to firms within its building societies portfolio.
In the letter the FCA provides an: