The Financial Conduct Authority has proposed mortgage rule changes that could make it easier for first-time buyers, older borrowers and the self-employed to get a loan. The regulator wants lenders to have more room to look at a borrower’s individual circumstances instead of relying so heavily on rigid tests.

That is drawing attention now because the FCA is taking responses on the plans until 28th July 2026, giving lenders, brokers and borrowers a clear window to weigh in before any rules are finalised. The changes could matter quickly for people whose pay does not fit a standard mould, including the self-employed, borrowers paid in foreign currency and older homeowners trying to secure lending later in life.

David Geale said the mortgage market needs to adapt to longer working lives and changing employment patterns. “We’re living longer and how many people work has changed. Our mortgage rules need to keep pace so those who can afford to repay can borrow,” he said. He added that stronger protections now make it possible to “safely widen access to mortgage borrowing for those that may be underserved.”

The proposals would reduce barriers for lenders to offer flexible repayments to people with variable income, including the self-employed, and would allow lending to borrowers paid in foreign currency. Lenders would also be encouraged to assess affordability using a person’s full and current situation, rather than automatically shutting out applicants over minor or past credit history issues. The FCA also wants to update affordability guidance for retirement interest-only mortgages and give lenders more flexibility on interest-only and part interest-only lending.

Karen Noye said a broader approach could help more people get onto the property ladder, especially if lenders stop treating old credit issues as an immediate dead end. But she warned that wider access has to be handled carefully. Looser rules around affordability and lending structures, particularly for interest-only borrowing or loans taken later in life, may improve access in the short term, she said, but they could also lead to unsustainable commitments that weaken financial security further down the line.

Noye pointed to a trend already under way. “We have already seen a significant increase in people taking mortgages that they well be paying well into their retirement years,” she said, warning that could hit quality of life if more income goes on housing costs than borrowers had planned for. That is the hard edge of the FCA’s plan: the same flexibility that could open the door for people who have struggled to borrow could also leave some of them carrying housing costs longer than they can comfortably afford.

If the consultation leads to final rules, the biggest change would be who gets judged on the substance of their finances rather than on a narrow credit snapshot. That could expand the pool of borrowers at a time when transaction volumes remain under pressure, and it could give estate agents more buyers to work with if demand follows. For now, the FCA has set the deadline at 28th July 2026, and the final shape of the rules will depend on whether regulators decide that broader access can be offered without weakening protection.