The FCA plans to issue a call for evidence on stress testing rules to simplify mortgage processes and enhance options for remortgaging. Mortgage professionals express mixed views, supporting potential benefits for borrowers but cautioning against compromising affordability safeguards. Experts warn against loosening regulations reminiscent of pre-crisis lending practices, highlighting the necessity to balance flexibility with financial stability to avoid future crises. The focus is on ensuring that reforms aid borrowers without exposing them to excessive debt risks, echoing lessons from the 2008 financial collapse.
"Affordability is an ongoing issue for many prospective buyers so a review of the stress testing rules is no bad thing. However, we have to be careful that we do not revert to the Wild West that was the mortgage world in the years leading up to the Global Financial Crisis."
"Easing stress testing will be welcomed by borrowers, as it will allow them to access better mortgage deals, particularly those trapped on high rates, but it's important to be cautious about the potential consequences."
"The FCA is tearing up the mortgage rulebook, throwing a lifeline to homeowners, but it risks opening the floodgates to riskier lending and systemic instability."
Collection
[
|
...
]