DP25/2: Mortgage Rule Review: the future of the mortgage market

Read DP25/2 (PDF)[1]

Why we are publishing this Discussion Paper 

This Discussion Paper (DP) launches a public conversation on the future of the UK mortgage market.  

We consider areas where changes may be needed to support sustainable home ownership and economic growth, and where increased flexibility could allow firms to tailor their product offerings to consumers’ evolving needs. Possible measures include: 

• Revising our responsible lending rules to support wider access to sustainable home ownership.
• Ensuring the regulatory framework, and the market, are prepared for anticipated increases in demand for later-life lending.
• Introducing more flexibility to promote consumer understanding, information needs and innovation.
• Rebalancing the collective risk appetite in mortgage lending including trade-offs and risk that this could lead to. 

Who this is for 

This paper will primarily interest:  

• Mortgage lenders and administrators, including later life and equity release firms.
• Home purchase providers and administrators.
• Mortgage intermediaries.
• Trade bodies representing mortgage lenders and intermediaries.
• Consumer groups and organisations.
• Consumers who own, or want to own, their home with a mortgage, or who want to release equity from their home for later life. 

Next steps 

Online response form[2]

Send us your feedback by 19 September 2025. 

We are asking for your views on the topics discussed in this paper, and specifically the questions collated in Annex 1. We will consider feedback to decide our next steps. Where there is a case for making changes to our rules and guidance, we will consult on any proposed changes. 

You can send your comments to us using the online response form[2], or by email to: [email protected]. 

Background 

Our 5-year strategy[3] aims to deepen trust, rebalance risk, support growth, and help consumers navigate their financial lives. We want to improve our mortgage rules to help more people access sustainable home ownership and encourage a dynamic, innovative and competitive market.  

We previously published our statement and call for evidence on our interest rate ‘stress test’ rule[4] (MCOB 11.6.18R). We then published our consultation (CP25/11[5]) on first steps to simplify our rules and increase flexibility. This closed on 4 June 2025, and we aim to publish the Policy Statement in Q3 2025. We will also consider relevant responses to the consultation alongside responses to this paper. This DP, and opening this public discussion on the future of the mortgage market more broadly, is the next step in our Mortgage Rule Review.