The Financial Conduct Authority invites the opinion about its mortgage control review, which aims to stimulate the ownership of home and to support growth.
Those who can benefit from further changes to mortgage rules include buyers, the independent and people who borrow in retirement.
This is the second and more wide mortgage review that the regulator carried out this summer.
Interest areas include the potential to update responsible credit rules to support broader access to sustainable home ownership and to ensure that the regulatory framework and the market are prepared for the likely future increase in demand for later loans.
It will also try to introduce more flexibility to promote the understanding, information needs and innovation of consumers, while also balances the hunger of the collective risk in mortgage loans.
The work to reform the mortgage rules was included in the FCA’s strategy, who connects the supervisor to help consumers navigate their financial life and help growth.
The Measures were also included in a letter to the prime ministerThose detailed changes to support economic growth.
As part of this work, the FCA says that it has talked to companies about the flexibility that is already available when checking whether someone can afford a mortgage, which in turn has helped more borrowers to gain access to mortgages.
Although there are many factors in thinking about the future of the mortgage market, says De Waakhond, says the housing stock, social policy and broader economic conditions, all influence affordable home ownership.
The FCA emphasizes that all changes in the rules are only part of the story. The supervisor promises to “cooperate with others to support access to home ownership to create an effective mortgage market where more borrowers can afford to pay back access to the mortgages they need”.
FCA executive director for payments and digital financing David Geale says: “We want to develop our mortgage rules to help more people access to sustainable home ownership. After reaching higher standards on the market, this is the time to consider more flexibility in a trusted market.”
“Changing our mortgage rules can make it easier for people to get to the real estate ladder and to retire mortgages.”
“We cannot solve all the problems related to home ownership. But we play our role in helping people to better use the mortgage market to navigate their financial life and to encourage a dynamic, innovative and competitive market.”
Feedback on the discussion document closes on September 19.
Respond to the FCA announcement, says Broadstone Senior Director of Risk Paul Matthews: “The revision of the FCA of the FCA lays the foundation for relieving the guidelines for regulations and risk reversal to stimulate home ownership.”
“Less than two decades after the global financial crisis, a further reduction in mortgage requirements will be uncomfortable for some, but the evidence points to low standard rates and missed payments, whereby the regulator tries to find a suitable regulatory balance.”
“In a volatile market environment, with fluctuating rates and economic headwind, the mortgage sector has remained robust. The regulator will ensure that he retains appropriate guarantees and at the same time removes unnecessary obstacles for their financial objectives.”
In the meantime, Fairer Finance Managing Director James Daley says: “The last discussion document of the FCA makes it clear that they understand the challenge and are ready to move the wheels to break down the regulatory barriers.”
“We must now see a public dedication of the government – as well as agencies such as the Money & Pensions service – that they contribute to breaking down the economic and social barriers that stand in the way of people who are in later life in later life.
“There is a huge opportunity here – with the potential to unlock more than an additional £ 20 billion in consumer expenditure per year by 2040. But government and supervisors have to work together if we want to achieve this potentially.”
With the release of the shares that is one of the focal points of the government, Jim Boyd, CEO of Equity Release Council, explains: “The discussion document acknowledges that mortgage products are aimed at older borrowers, whether it is lifelong, visual interest only or other forms of mortgage.”
“Two in five residents of the UK are more than 50 years old and in 15 years of half of the British households are expected to use home capacity to support their spending needs in later life.”
“To help people navigate better by navigating their financial lives, we must ensure that people understand their options and have the products and protection to make self -assured choices.”
“This reflects, [the] Announcement invites a prospect of how advice qualifications can evolve to make ‘improved advice’ possible to support consumers, informed decisions.
“Although we have seen considerable innovation in the last five years, the announcement encourages industry to continue to challenge itself to adapt to a broader range of customers who have different needs and ambitions.”
“The Equity Release Council is looking forward to participating with the FCA -public discussion and helping members to make their voices heard as part of this important debate.”
Also weigh the Building Society Association Head of MortGage and Housing Policy Paul Broadhead: “Since the financial crisis, it has been clear that the regulatory shuttle has been swung too far to caution and priority has given detailed rules at the expense of access to the benefits of homeowners.”
“We therefore welcome the Discussion Document of the Financial Conduct Authority (FCA) that investigates the future of mortgage loans for all types of borrowers. In addition to the promised long -term home strategy of the government, this assessment offers a crucial opportunity to form the British mortgage market for the following decades and then.”
“In the summer we will bring our members into contact and carefully consider our response. I expect a number of very lively discussions while we investigate both the risks and the opportunities in all areas of mortgage regulation.”
“In addition, it is important that we do not endanger the consumer confidence and the confidence that we have built up in the mortgage market since 2008, but we must be radical and ambitious in our thinking to ensure that we reach a framework that enables us to support more people on their homeowner’s journey both now and in the future.”