FCA Mortgage Rule Proposals: Could It Become Easier to Get a Mortgage?
- Adrian Collins
- 3 days ago
- 4 min read
Possibly, but not yet. The Financial Conduct Authority (FCA) recently consulted on proposed mortgage rule changes that could give lenders more flexibility when assessing certain borrowers, including first-time buyers, self-employed applicants, older homeowners, and those with minor or historic credit issues.
These proposals aim to lead to more personalised affordability assessments and a wider range of mortgage products. However, these rules are not currently in force. The FCA concluded its consultation period on 28th July 2026, and the regulator is now reviewing feedback to determine the next steps. Until final decisions are made and implementation timelines are set, lenders’ existing rules remain in place.
What Could Change Under the FCA Mortgage Rule Proposals?
The mortgage market has evolved significantly, yet some regulatory frameworks have lagged behind the realities of modern life, such as the rise of gig work, side hustles, and longer working lives. The Financial Conduct Authority’s (FCA) proposals aim to bridge this gap by moving away from rigid, one-size-fits-all exclusions.
The core objective is to encourage lenders to take a more holistic view of affordability, focusing on a borrower’s full, current financial picture rather than relying on automatic rejections based on specific, narrow criteria.
Under the proposals, lenders would be encouraged to:
Support Non-Standard Income: Create more accessible products for the self-employed or those paid in foreign currencies.
Evaluate Credit History Fairly: Avoid rejecting applicants outright due to minor or historic credit blips if the borrower can prove current financial stability.
Modernise Retirement Lending: Update guidance for Retirement Interest-Only (RIO) mortgages, making it easier for older homeowners to access the wealth tied up in their properties.
Expand Interest-Only Options: Offer more flexibility for interest-only or part-interest-only mortgages, provided there is a credible, clear repayment strategy in place.
Who Could Benefit?
These proposals are specifically targeted at groups that have historically found it difficult to navigate the rigid mortgage approval process.
Borrower Group | Potential Benefit |
Self-Employed | Greater flexibility for those with variable income streams or complex earnings. |
First-Time Buyers | Less likelihood of being automatically excluded due to outdated affordability assessments. |
Older Borrowers | Easier access to wealth in property via updated Retirement Interest Only mortgage guidance. |
People with Historic Credit Issues | A shift toward assessing current financial health rather than relying on old, minor credit marks. |
Foreign Currency Earners | Potentially broader product availability tailored to non-GBP income. |
What Should You Do in the Meantime?
It is crucial to remember that these are proposals, and the final rules have not yet been confirmed. Nothing has changed regarding your current mortgage application eligibility today. If you are looking to buy a home or remortgage right now, you should proceed with the current rules in mind.
However, keep an eye on industry updates. If you fall into one of the categories above, you may find that the lending landscape becomes more favourable in the coming months as the FCA publishes its decisions and lenders begin to update their internal policies in response. In the meantime, focus on keeping your credit file clean, gathering thorough evidence of your income, and speaking to a qualified mortgage adviser who can help you navigate your current options.
Quick Questions & Answers
Are these rules already in effect? No. These are proposed changes that are currently being reviewed by the FCA following a consultation period. They are not yet law and do not affect your current mortgage application.
How will this change the affordability test? The proposals encourage lenders to assess you based on your full and current financial situation, rather than rejecting applications automatically based on specific, rigid criteria like minor historical credit issues.
Does this mean it will be "easier" to get a mortgage? It means the market could become more flexible. The goal is to safely widen access for creditworthy borrowers who are currently underserved, without removing important consumer protections.
Can I still get a mortgage if I’m self-employed? Yes, you can certainly get a mortgage now as a self-employed person, but these changes aim to make that process smoother by reducing the barriers lenders face when offering flexible repayments for variable income.
Advice for Anyone Considering a Mortgage
The FCA’s proposed mortgage rule changes could give lenders more flexibility when assessing borrowers with non-standard income, historic credit issues or retirement-related borrowing needs. However, the proposals are not yet confirmed or in force, so current mortgage rules and lender criteria continue to apply.
If you are considering a mortgage, a qualified broker can help you understand your options based on your individual circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Written by Adrian Collins, Founder of Beechwood Mortgages (FCA Ref: 219335). Reviewed and Approved by Stonebridge Mortgage Solutions Limited, which is authorised and regulated by the Financial Conduct Authority (FCA Ref: 454811).
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