The Financial Conduct Authority (FCA) is simplifying mortgage rules to aid homeowners in remortgaging or reducing loan terms. These changes aim to provide greater flexibility and assist individuals in managing their financial lives. The FCA is removing certain guidance deemed unnecessary to lessen the regulatory burden on financial firms. Consequently, borrowers may more easily shorten their mortgage terms, which could reduce overall borrowing costs. Although the full affordability assessment requirement will be lifted, lenders still must carefully consider affordability to avoid harming customers.
Homeowners are set to benefit from simplified mortgage rules, as the Financial Conduct Authority (FCA) confirms changes designed to make remortgaging or reducing loan terms easier.
The City regulator's shake-up aims to introduce greater flexibility and help individuals better manage their financial lives.
A key part of the reform involves the FCA removing existing guidance that it deems to have "served its purpose," a move intended to reduce the regulatory burden on financial firms.
This adjustment means borrowers could find it simpler to shorten their mortgage term, potentially lowering the total cost of borrowing.
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