The FCA announced proposals in June 2026 intended to give mortgage lenders more flexibility when assessing individual circumstances. The consultation deadline was 28 July 2026. This is an archive account of those proposals, reviewed on 15 October 2026; it is not a statement that every proposal has become an operative lending rule.
What the consultation considered
The regulator proposed changes aimed at improving access for borrowers whose circumstances do not fit a straightforward application, including variable income and some later-life borrowing arrangements. Its stated approach retained consumer protections alongside greater flexibility.
A consultation explains possible changes and invites responses. Borrowers need to distinguish that stage from a final policy statement, an effective date and a lender actually offering a product.
Ask about the offer available now
If you are applying, ask the lender or a regulated mortgage adviser which current criteria apply to your income, credit history and repayment plans. Request a clear explanation of the interest rate, fees, repayment type and what happens when an introductory rate ends.
Keep a dated copy of the quotation. An article about future flexibility cannot tell you whether a particular application will be accepted or how much borrowing is appropriate.
Prepare the evidence
Organise the income and spending documents requested for your application and explain material changes honestly. Compare the total commitment rather than concentrating solely on a headline rate. Do not commit to a purchase on the assumption that an anticipated regulatory change will secure your loan.
Source: Financial Conduct Authority, June 2026 mortgage proposals.