There’s some potentially good news on the horizon for homeowners and aspiring buyers: the Financial Conduct Authority (FCA) is considering shaking things up in the mortgage world.

With house prices soaring and affordability feeling like a distant dream, these proposed changes aim to make borrowing simpler, fairer, and more accessible.

If you’ve ever felt the stress of scraping together enough for a deposit or struggled to meet strict lending rules, this could be the break you’ve been waiting for.

What’s Changing?

The FCA is looking to loosen some of the rigid rules around mortgages to help more people get on – or move up – the property ladder. They’re reviewing everything from how much you can borrow to how your affordability is assessed.

For example, did you know that right now, mortgage lenders can only offer a limited number of loans to people borrowing more than 4.5 times their income¹? Under the FCA’s plans, that rule might soon be relaxed, potentially giving buyers, especially first-timers, more options². Plus, renters could see their regular payments count towards affordability assessments, finally recognising that if you’ve been paying rent every month, you can probably manage a mortgage too³.

If the plans materialise, these changes could mean more people being able to potentially afford the homes they want—whether they’re first-time buyers, upgrading for more space, or looking to downsize.

What It Means for You

Imagine this: Perhaps you’ve outgrown your current home but have been stuck because of the amount of lending available relative to your income, or you have first-time buyers in the family who are currently renting, but unable to get onto the property ladder – these proposed changes aim to address those very frustrations. By making the rules less restrictive, the FCA wants to make it easier for people to buy the home that suits their life.

A Balancing Act

Of course, the experts warn there’s a flip side. Relaxing these rules could mean lenders take on a bit more risk, and not every plan will succeed. However, the FCA’s chief, Nikhil Rathi states that this is about creating opportunities, even if it means taking some calculated risks³. For homeowners and buyers, it could represent a chance to access better deals and make homeownership dreams more attainable.

What’s the Catch?

Here’s the reality check: if demand for homes increases but there aren’t enough properties available, property prices could keep rising. That’s why it’s important to keep an eye on the supply side of housing too.

So, What’s Next?

If these changes go ahead, it could mark a significant shift in how mortgages work in the UK. Whether you’re looking to move into something a little bigger or have family members looking to take their first steps on the property ladder, the playing field might soon feel a little more even.

Rest assured that we’ll be here to share more information should any of these proposed changes go ahead, and how they may affect you. We’re here to help provide bespoke advice that’s tailor-made to your exact circumstances, so if you’re thinking of moving or looking at opportunities around the corner, please just get in touch and we can review your situation.

Sources

1. The Guardian (2025) UK mortgage rules could be eased to increase growth. Available at: https://www.theguardian.com/money/2025/jan/17/uk-mortgage-rules-growth-fca-home-ownership-ppi [Accessed 20 Jan 2025]
2. Scottish Business News (2025). Mortgage rules may be loosened to boost borrowing, says FCA. Available at: https://scottishbusinessnews.net/mortgage-rules-may-be-loosened-to-boost-borrowing-says-fca [Accessed 20 Jan 2025]
3. BBC News (2025). Mortgage lending rules under review: FCA reveals plans. Available at: https://www.bbc.co.uk/news/articles/cdryy33v13ko [Accessed 20 Jan 2025]

All the information in this article is correct as of the publish date 30^th January 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

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