"First-time buyers, the self-employed and older borrowers could soon find it easier to secure a mortgage under a package of reforms proposed by the Financial Conduct Authority, as the regulator moves to modernise lending rules to reflect changing working lives and demographics. The FCA said it plans to simplify mortgage regulations and loosen restrictions on lenders to allow more flexible products, better suited to people with irregular incomes, later-life borrowing needs and non-traditional career paths."
"The regulator also wants to encourage greater use of data and technology, including artificial intelligence, to help mortgage brokers deliver faster, more accurate advice, while retaining human oversight. In addition, it plans to simplify rules on mortgage advertising and disclosures so consumers can more easily understand information online. David Geale, executive director for payments and digital finance at the FCA, said the reforms are designed to bring the mortgage market into line with modern realities."
The FCA proposes simplifying mortgage regulations and loosening lender restrictions to enable flexible products for people with irregular incomes, later-life borrowing needs and non-traditional careers. The regulator plans to review interest-only mortgage rules to make them more accessible for older borrowers and will launch a focused market study into the lifetime mortgage sector. The FCA seeks greater use of data and technology, including artificial intelligence, to help mortgage brokers deliver faster, more accurate advice while retaining human oversight. The FCA intends to simplify mortgage advertising and disclosures to make online information easier for consumers to understand. The proposals follow government pressure to support economic growth and build on earlier clarifications about lender flexibility in interest-rate stress testing.
Read at Business Matters
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