CP25/11: Mortgage Rule Review: First steps to simplify our rules and increase flexibility

Read CP25/11 (PDF)[1]

Why we are consulting

Our 5-year strategy[2] commits to helping people navigate their financial lives and supporting the competitiveness of financial services. Now with the introduction of the Consumer Duty[3] which sets clearer, up-to-date standards in financial services, we want to remove guidance that’s no longer required and provide greater opportunity for innovation. 

This consultation proposes ways to make it easier to:

• remortgage with a new lender
• reduce the overall cost of borrowing through term reductions
• discuss options with a firm, whilst still having the option to seek advice if needed  

We also propose retiring two pieces of non-Handbook guidance which we believe have fulfilled their purpose.

Who this applies to

• Mortgage lenders and administrators.
• Home purchase providers and administrators.
• Mortgage intermediaries.

Who else will be interested in this consultation:

• Industry groups and trade bodies.
• Consumer groups and organisations.
• Mortgage consumers.

Next steps

Online response form[4] 

We’re asking for comments on this CP by 4 June 2025. You can submit your response via the online response form[4] on our website or by:

Emailing: [email protected].

Writing to us at: Mortgage Policy, Financial Conduct Authority, 12 Endeavour Square, London E20 1JN.

After reviewing the feedback, we aim to publish a Policy Statement in Q3 2025. 

Background

We committed to begin simplifying our mortgage rules in our letter[5] to the Prime Minister. Where we set out a number of commitments to support the growth of the UK economy.  

This will be our first consultation on proposals to change our regime under the Mortgage Rule Review. It will be followed in June by a Discussion Paper on the wider mortgage market and conduct regime.