Government expresses support for FCA proposal to review mortgage rules
The Government said it wants the Financial Conduct Authority review to be as ambitious and rapid as possible to help people achieve homeownership.
The Economic Secretary to the Treasury has written to the City regulator setting out the Government’s support for its proposal to review mortgage rules.
City Minister Emma Reynolds said she will work closely with regulators and industry “in a way that supports as many people as possible”.
In January, the Financial Conduct Authority (FCA) said it is looking into simplifying mortgage rules, which could help home buyers to secure a property.
FCA chief executive Nikhil Rathi said the regulator would open a discussion on the balance between access to lending and levels of defaults.
The regulator has also said it would work with the Government to remove “overlapping standards” such as the Mortgage Charter.
Many lenders signed up to the charter to help borrowers struggling with their repayments amid the higher mortgage rate environment, although banks and building societies were already offering various forms of support.
Mortgage lending rules were toughened after the 2008 financial crisis, to make sure there could be no return to irresponsible lending.
The Government said it wants the FCA review to be as ambitious and rapid as possible to help people achieve homeownership.
Housing Minister Matthew Pennycook said: “The affordability challenges facing first-time buyers mean that we now have a generation locked out of homeownership. This Government is determined to change that, ensuring that young families and hardworking renters can buy a home of their own.”
The Government has also committed to launching a new mortgage guarantee scheme and also recently announced plans for streamlining and digitising the process of buying and selling homes.
Further details on the mortgage guarantee scheme will be announced in due course, the Government has said.
