First-time buyers set for mortgage boost under new FCA rules

New mortgage rules designed to help first-time buyers, the self-employed and people borrowing in retirement are being proposed.

The Financial Conduct Authority (FCA) has put forward the draft rules to see how lenders react.

First-time buyers are older and borrowing for longer, including into later life, the FCA says. Its data shows that last year, 68% of first-time buyers borrowed for terms of 30 years or longer.

The FCA says homeowners will also increasingly need to access their housing equity to provide for their needs during retirement.

Scrap checks

Last month, the FCA unveiled a plan to scrap affordability checks for homeowners looking to remortgage, giving them access to potentially cheaper deals.

David Geale, Executive Director for Payments and Digital Finance at the FCA, says: “We want to evolve our mortgage rules to help more people access sustainable home ownership.

Now is the time to consider allowing more flexibility in a trusted market.”

“Having achieved higher standards in the market, now is the time to consider allowing more flexibility in a trusted market,” he says.

“Changing our mortgage rules could make it easier for people to get onto the property ladder and manage mortgages into retirement.”

Matt Smith, Mortgage Expert at Rightmove, said: “It’s really promising that the regulator is opening up these discussions, and continuing to look at targeted regulatory changes that could help people in different circumstances to borrow what they need to buy a home.

“We particularly welcome the potential to help more first-time buyers that can afford it to borrow more responsibly and have access to sustainable home-ownership.”

Article from the Negotiator 25 June 2025.