Finance
UK's financial watchdog to review mortgage stress tests to improve access
Published by Global Banking & Finance Review®
Posted on March 7, 2025
1 min readLast updated: January 25, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 7, 2025
1 min readLast updated: January 25, 2026
The FCA is reviewing mortgage stress tests to simplify lending rules and improve access to affordable mortgages as interest rates decline.
(Reuters) - Britain's Financial Conduct Authority (FCA) said on Friday it is taking steps to make mortgages more accessible by examining and simplifying the rules around mortgage lending.
The finance watchdog will launch a call for evidence on different methods of stress testing as part of an effort to simplify mortgage approval regulations.
We want to ensure firms are aware of the flexibility rules provide, and that creditworthy consumers can access the affordable mortgage they need, the agency said.
The regulator noted the market approach to interest rate stress testing may be "unduly restricting" access to affordable mortgages, particularly as interest rates begin to decline.
"We will be delivering further proposals quickly to support home ownership and the wider UK economy," said FCA chief executive Nikhil Rathi in a statement.
In May, the FCA will launch a consultation with proposals to simplify mortgage rules for consumers, including those remortgaging and shortening their loan terms.
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Tasim Zahid)
The FCA is reviewing mortgage stress tests to simplify mortgage lending rules and improve accessibility.
The FCA believes that the current market approach to interest rate stress testing may be restricting access to affordable mortgages.
In May, the FCA will launch a consultation with proposals aimed at simplifying mortgage rules for consumers, including those looking to remortgage.
The FCA aims to ensure that creditworthy consumers can access affordable mortgages and support home ownership in the UK.
Nikhil Rathi is the chief executive of the FCA, and he stated that further proposals will be delivered quickly to support home ownership.
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