Mortgage Rule Review: Feedback to DP25/2 and Roadmap 13 MORTGAGE NEWSLETTER Introduction This update will be of immediate interest to all Mortgage firms and their advisers. It will also be of great interest to those firms and advisers who operate in the later life lending market. This paper is a feedback statement dealing with the feedback received on the future of the mortgage markets in the discussion paper 25/2 and action the FCA will take to modernise their mortgage rules. This forms part of the FCA’s 5yr strategy which sets out to support growth and help consumers navigate their financial lives. It also forms part of the work announced in a letter to the Prime Minister to support home ownership and the UK economy. The FCA has previously published PS25/11 as the first steps to simplify the rules and this was summarised by Paradigm as a compliance update on 14 August 2025. What the FCA are planning and Roadmap for 2026 Following on from the public conversation held in June 2025 and the Consumer Duty call for input in July 2024, the FCA believes that there are several areas where they can act to widen access, support growth and improve lives. These areas and actions will be prioritised into four themes: • Expanding access for first-time buyers and underserved consumers • Enhancing later life lending • Enabling innovation • Protecting vulnerable consumers The Regulator intends to act at pace to bring forward proposals that will support the first-time buyers and underserved consumers groups in 2026. Policy development on all themes will commence by the end of 2026, continuing into 2027 as required. The Roadmap in the Feedback statement details that the first-time buyer and underserved consumers will begin with Loan to Income and Responsible lending rules during H1 2026 with feedback and policy statements published in H2. The Later Life markets will need further in depth discussions to look at suitable solutions and will contain a focused market study during H1 and H2 with feedback and policy statements in H1 2027. Christine Newell Mortgage Technical Director Paradigm Mortgages Continued on next page...
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