UK's FCA Consults on Loosening Mortgage Affordability Rules to Widen Access

The UK's Financial Conduct Authority is consulting on proposed changes to mortgage rules designed to make borrowing more accessible for groups that often struggle to qualify, including first-time buyers, older applicants and self-employed workers. The regulator wants lenders to assess affordability using a borrower's complete and up-to-date financial position rather than applying rigid, one-size-fits-all criteria, and is proposing steps to accommodate people with uneven or foreign-currency income. The proposals build on reforms set out in December 2025 and form part of the FCA's wider strategy to rebalance risk and support economic growth while retaining consumer safeguards. Officials argue that as working patterns and life expectancy change, mortgage rules must keep pace so that people who can genuinely afford to repay are not shut out. The regulator stressed that it is not proposing a return to the loose lending that preceded the financial crisis; rather, it wants lenders to exercise more judgement for applicants with strong but unconventional financial profiles. The consultation is open until 28 July 2026, and the FCA is also gathering direct feedback from consumers about their experiences. Separately, regulators are reviewing loan-to-income limits to give lenders more flexibility.