Author Nicholas James Tye

Consultation Paper (CP) 26/18: FCA targets mortgage access reforms

The Financial Conduct Authority (FCA) published Consultation Paper (CP)26/18 1 which proposes targeted changes to the mortgage conduct regime to improve access for first-time buyers and other consumers that the regulator considers poorly served by mortgage products.

The consultation describes a market in which lending standards have increased since the financial crisis with over 99% of mortgages originated since 2014 on track. However it also notes that house prices have outpaced wages and that some creditworthy consumers may be excluded by rules or market practice that no longer reflect borrower circumstances.

Although the FCA acknowledges that regulation alone cannot solve affordability pressures it considers that targeted rule changes could improve access to responsible mortgage lending by removing unnecessary barriers where risks are manageable.

CP26/18 forms part of a recent body...