Image of a person's hand holding a set of house keys with a house keyring above another person's open hand.
Buying a home is different now to even a decade ago.
People are living longer, the way they work has changed and, for many, how much they earn can vary month-to-month. People will also carry mortgage debt for longer and use it more flexibly across their lives.
That’s why we’re proposing changes[3] to help more people to access a mortgage – including first-time buyers, older borrowers and the self-employed.
More flexibility for how people live now
We want to give mortgage lenders the flexibility to take a rounded view of someone’s finances – so they can offer a mortgage that fits real people’s real lives, not a standard template. This should help unlock access for some people who can afford a mortgage but find it difficult to access one.
It could mean people with variable incomes – like the self-employed – can get a mortgage with more flexible repayments.
And older homeowners may find it easier to access wealth stored in their home for a more secure and comfortable retirement.
Lenders will also be encouraged to assess affordability based on someone’s full and current situation, so they don’t dismiss people because of minor or past credit issues. They’ll also have more flexibility to offer interest-only lending where suitable.
This is focusing firms on achieving the right outcomes for people.
Addressing the risks head on
As we’ve set about reforming the mortgage market, some have asked if we are letting too much risk into mortgage lending.
We’re being upfront: There are trade-offs that come with wider access.
More people – particularly those with less certain incomes – being able to borrow inevitably brings with it the risk that they may be less able to deal with unexpected impact on their finances, if facing an issue such as unemployment or ill health. But the longer-term risks – to individuals and society as a whole – of people left unable to get on the housing ladder is, all too often, underpriced. Renting is usually more expensive and can be less secure than owning your own home. While renting into retirement brings its own challenges.
Context is key. The market is resilient, thanks to core affordability requirements that will remain vital. Today, 99% of mortgages taken out since 2014 are on track. Arrears are at historically low levels, even with recent interest rate rises.
Lenders must still make responsible decisions on who to lend to.
Where people do run into trouble, lenders need to support them.
And our Consumer Duty continues to raise standards.
That’s why we’ve made a conscious choice that now is the right time to carefully rebalance the risks in the mortgage market.
The feedback we’ve had so far, and our own research, suggests that any slight increase in risk is manageable, while delivering benefits to more consumers.
We know, though, that financial regulation can only do so much.
A mortgage market that meets the needs of a diverse range of people who want to own their own home relies on everyone in the system – national and local government, lenders, brokers, developers – working together to deliver it.
Have your say
We want your views.
What will our changes mean for you?
Are we going far enough and at the right pace?
Are we balancing the risks in the right way?
We want to hear from you. Consumers can now share their feedback directly with us using our online tool[4]. The consultation[3] is open until 28 July 2026.
We want the mortgage market to reflect how people live – today and in the future. Now is the time to shape it.