FCA propose to simplify mortgages

The current Labour government has been calling for less regulation in the financial sector to promote growth. As someone who has worked in the sector for the last 25 years, I welcome it. Regulation has become stifling for lenders. These days Governance and risk teams far outnumber those trying to do business and promote growth in firms.

Now, of course, some regulation was needed. We have history, not just in the UK but worldwide in the last couple of decades that saw a need for it. That said, regulation has gone far beyond where it needs to be. Everyone suffers.

The Chief Executive of the FCA has indicated that work is underway to cut back. That includes removing unnecessary regulation and some of the burden on firms regarding just how much data they are required to provide.

The key areas that are to be tackled

• Simplify responsible lending
• Simplify advice rules for mortgages
• Review the balance between access to lending and default levels
• Consult on removing maturing interest-only mortgages
• Remove outdated guidance
• Remove overlapping standards
• Remove the role of a Consumer Duty Champion

The chancellor has already urged regulators to look at loan-to-income (LTI) rules by relaxing these more to improve opportunities for buyers.

If, and I say that knowing how often an if turns into no action by the FCA they do make these changes it could provide a much-needed boost to everyone. Firms, borrowers, the housing market and so on.

Early days, but fingers crossed some real progress is made here. I will update in due course.