UK society has changed dramatically over the past decade. There have been huge shifts in the way we live and work and when we retire. Meanwhile, property prices have grown faster than wages, impacting affordability. 

 

But has the mortgage landscape kept pace with this transformation, or should more be done to boost access to home ownership? 

 

The Financial Conduct Authority (FCA) – the financial regulator that sets the rules lenders must abide by – has launched a review to find out and is asking anyone with an interest in the mortgage market to fill out a wide-ranging survey (there are 37 questions in all) by September 19th. 

 

Questions touch on issues such as: 

• Should it be easier to access lifetime mortgages? 

• What changes would help the self-employed? 

• Should the mortgage stress test be changed? 

 

Some sections of society feel that the current mortgage rules are too inflexible. 

Entrepreneurs and freelancers: Getting a mortgage can be more challenging if you’re one of Britain’s 4.4 million self-employed, especially if you’re not buying with someone who has a permanent salary. 

 

Older first-time buyers: Property prices mean that many people can’t afford to get on the housing ladder until later in life. However, due their age, lenders may only be willing to give them a mortgage over a reduced time frame. This pushes repayments up, sometimes making them unaffordable. 

 

Reliable renters: Some renters feel stuck between a rock and a hard place. Even though they have a steady income and good rental track record (and could meet monthly mortgage repayments), they can’t save enough for a deposit. 

To prevent risky lending practices, protect borrowers and ensure market stability, the UK currently has stricter mortgage rules for good reason so any future changes must be sustainable. 

 

The FCA says: “We want a well-functioning mortgage market where all borrowers who can afford to repay can access the mortgages they need. This means enabling firms to offer products which are better tailored to consumers’ needs, while continuing to help ensure a sustainable mortgage market which maintains the core lessons from the 2008 financial crisis.” 

If this is a subject close to your heart, then you can have your say by visiting the link below and completing the online response form.