Rightmove comment on FCA announcement

Matt Smith, Rightmove’s mortgage expert says: “It’s encouraging to see the FCA looking to widen access to mortgages while keeping strong consumer protections in place. The fact that around 99% of mortgages taken out since stricter rules were introduced in 2014 are not in arrears gives confidence there is room to responsibly expand lending. These proposals are positive in their intent, particularly in recognising the needs of groups like first-time buyers, the self-employed and retirees.

 “However, as these changes are largely permissive rather than prescriptive, their impact will depend on how simple they are for lenders and brokers to implement in practice. Recent changes to loan-to-income limits and stress testing are examples of how simple, easily adopted adjustments can quickly lead to real outcomes for buyers. For consumers to genuinely benefit, any new flexibility needs to be just as straightforward to apply and embedded into everyday lending processes.”