Overview

• FCA confirmed voluntary rule changes on July 21 allowing homeowners to reduce mortgage terms without full affordability assessments, easing borrower access to lower-cost deals.
• The reforms simplify remortgaging by removing outdated guidance and enabling streamlined affordability checks when switching lenders, helping consumers secure cheaper products.
• Lenders remain responsible under the Consumer Duty to assess affordability, avoid foreseeable harm, monitor outcomes and direct borrowers to regulated advice where needed.
• The FCA’s policy statement credits post-2008 reforms for keeping arrears and repossessions low and connects these updates with the government’s growth agenda.
• Stakeholders can submit feedback on the future of the mortgage market through a public discussion open until September 19, 2025.