The Financial Conduct Authority (FCA) has set the necessary steps to improve access to mortgages.
Regulators are reminding lenders of the flexibility of their rules, which helps more people access mortgages. This forms part of work announced earlier in the year in a letter to the Prime Minister to consider home ownership and regulations to support the UK economy. 
Once the lender decides whether to approve a mortgage, it tests whether the borrower can afford a mortgage at even higher interest rates.
As interest rates fall, current market approaches to interest rate stress testing may be overly restricting access to affordable mortgages.
The FCA wants lenders to recognize the flexibility the rules offer, allowing trustworthy consumers to access the affordable mortgages they need and support homeownership.
The FCA has confirmed that it will soon launch a call to evidence about current and alternative approaches to stress testing.
Then in May, the FCA began consultations to simplify the rules and propose early ideas to benefit mortgage consumers, and do the following in a simple way: Discuss options outside the regulated advice process. Reduce the duration of your mortgage
In June, the FCA will hold a public discussion on the future of the mortgage market. Alongside all stakeholders, the FCA considers what the market needs to offer to different consumers at different stages of the livelihood and the wider UK economy, and the role of regulatory roles to provide it.
Nikhil Rathi, CEO of FCA, commented: “Companies have the flexibility to help more people become homeowners and we want them to use it.
“We have something to do. We'll quickly provide further suggestions to support home ownership and the UK economy.”
Prime Minister Rachel Reeves said:
“The world is changing, which is why we have to go even faster in providing plans for change, so we can get more money in people's pockets.”
