What the proposed mortgage rule changes could mean for you

The rules around getting a mortgage could change if new proposals from the Financial Conduct Authority are approved¹. Check the mortgage rule changes.

The Financial Conduct Authority, also known as the FCA, regulates the UK mortgage market and sets rules that lenders must follow. Its latest Mortgage Rule Review is looking at whether parts of the current system could be made more flexible, particularly for people who may be able to afford a mortgage but find it difficult to meet traditional lending criteria¹.

The proposals are intended to support groups who may currently be underserved by the mortgage market, including first-time buyers, self-employed people, borrowers with variable income, older homeowners and those with historic credit issues¹.

Nothing has changed yet. The consultation is open until 28 July 2026, and the FCA will consider responses before deciding whether to introduce any new rules¹.

Why are mortgage rules being reviewed? Check the mortgage rule changes.

Mortgage rules are there to protect borrowers and make sure lending is affordable. Lenders need to check that customers can manage their repayments, both now and in the future.

However, the way people earn, borrow and manage their finances has changed. Many people no longer have one straightforward monthly salary. Some are self-employed, some work on contracts, some have income that changes throughout the year, and some want to borrow later in life.

The FCA is considering whether lenders should have more flexibility to assess people as individuals, rather than relying too heavily on standard rules that may not reflect their full financial position.

This is not about removing affordability checks. It is about asking whether responsible lending can be made more practical for modern borrowers. Check the mortgage rule changes.

Who could benefit from the proposals?

The proposed changes could help people whose circumstances are less straightforward.

That may include first-time buyers who can afford monthly payments but struggle to pass certain affordability checks. It may include self-employed workers whose income varies from year to year. It could also help older borrowers looking at later-life mortgage options, or people whose credit history does not fully reflect their current financial situation.

The impact will depend on the final rules and how lenders choose to apply them. Even if the proposals are approved, not every borrower will automatically find it easier to get a mortgage.

More support for people with changing income

One of the areas under review is how lenders assess income that is not fixed. Check the mortgage rule changes.

This could be relevant if you are self-employed, a contractor, a freelancer, a seasonal worker, or someone with more than one source of income. It may also apply if part of your income is paid in a foreign currency.

At the moment, some borrowers can find it harder to get a mortgage because their income does not fit neatly into a standard employed salary. A lender may want several years of evidence, or may take a cautious view of income that changes from month to month.

The proposed changes could give lenders more room to look at the reality of your earnings and spending patterns. That could lead to fairer assessments for people who can afford a mortgage, but whose income does not follow a simple monthly pattern¹.

You would still need to provide evidence of income and show that the mortgage is affordable.

A more balanced view of past credit issues

The proposals could also help some people who have had credit problems in the past. Check the mortgage rule changes.

A missed payment, default or other credit issue can make a mortgage application more difficult, even if the problem happened some time ago and your finances have improved since then.

The FCA is considering whether lenders should have clearer scope to distinguish between historic credit issues and current financial difficulty¹.

This could mean that lenders place more weight on your current circumstances, such as your income, outgoings, savings, recent credit behaviour and overall ability to manage the mortgage.

Past credit issues would still matter. Lenders would still need to understand what happened and assess the risk. But the approach could become more rounded, particularly where the issue was historic or isolated.

More options for older homeowners

The review also looks at borrowing in later life, including retirement interest-only mortgages. Check the mortgage rule changes.

A retirement interest-only mortgage allows you to pay the interest each month, with the loan usually repaid when the property is sold, when you move into long-term care, or when you die.

For some older homeowners, this type of mortgage may help them manage borrowing, stay in their home, or access money tied up in the property.

The FCA’s proposals could give lenders more confidence to offer suitable later-life mortgage options. However, borrowing in later life needs careful thought. It can impact means tested benefits, future choices, inheritance plans and the value of your estate.

You should always seek regulated advice before considering later-life borrowing.

Interest-only mortgages may become more flexible

The FCA is also considering changes to interest-only and part interest-only mortgages.Check the mortgage rule changes.

With an interest-only mortgage, your monthly payments cover the interest, but not the original loan amount. This means you still need a plan to repay the capital at the end of the mortgage term¹.

The proposed changes could allow lenders to take a more flexible approach when considering interest-only borrowing and repayment strategies.

This could help some borrowers, especially where a repayment mortgage is not the only suitable option. However, interest-only borrowing carries important risks. If your repayment plan does not work, you may need to sell your property or find another way to repay the loan.

A mortgage adviser can help you understand whether this type of mortgage is appropriate for your circumstances.

What could this mean for first-time buyers?

For some first-time buyers, the proposals could make the mortgage process more accessible.

This may be helpful if you have a good income but struggle with affordability calculations, have variable earnings, or have a historic credit issue that does not reflect your current financial position. Check the mortgage rule changes.

If lenders are given more flexibility, they may be able to look at the wider picture rather than deciding based only on standard criteria.

That said, affordability will still be central. You will need to show that you can manage your mortgage payments and wider household costs. Lenders will also want to consider what could happen if interest rates rise or your circumstances change.

Speaking to a mortgage adviser early can help you understand how much you may be able to borrow and what steps you can take to improve your position.

What could this mean if you are self-employed?

Self-employed borrowers often face a more detailed mortgage process because their income can be harder to assess.

You may have profits that change from year to year, income taken as dividends, money retained in the business, or contracts that do not look like a standard payslip.

The proposed rule changes could encourage a more practical approach to assessing self-employed income. Instead of focusing only on rigid requirements, lenders may have more flexibility to consider the strength and sustainability of your overall financial position.

This could lead to more choice for self-employed borrowers over time.

Preparation will still be important. Keep your accounts, tax calculations, bank statements and income evidence organised, and speak to an adviser before applying.

What could this mean if you are moving home?

If you are planning to move, the proposals could affect both your own mortgage options and the wider market.

A more flexible lending environment could help some buyers access mortgages, which may increase demand. If you are selling, that could be positive. If you are buying, it may mean more competition for suitable homes.

For your own application, lenders may be able to take a more tailored view of your circumstances, especially if your income, age, credit profile or borrowing needs have changed since you last applied for a mortgage.

Before making plans, it is worth checking what you could borrow and whether your current circumstances are likely to meet lender criteria.

Will mortgages become easier to get?

For some borrowers, they might.

The proposals are designed to help creditworthy people access suitable mortgages where current rules may be creating unnecessary barriers. However, they will not mean that everyone can borrow more easily.

Lenders will still need to check affordability. They will still look at income, spending, credit commitments, deposit, property value and the overall risk of the mortgage.

The likely direction is more flexibility, not weaker standards.

What happens next?

The FCA consultation runs until 28 July 2026. After that, the FCA will review the feedback it receives and decide whether to move forward with changes.

If new rules are introduced, lenders will then need to decide how to reflect them in their own criteria and application processes. This means the practical impact may take time to appear and could vary between lenders.

For now, the changes remain proposals.

If you are thinking about buying, remortgaging, moving home, borrowing in later life, or applying with more complex circumstances, speak to a mortgage adviser. They can explain the options available.

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

There may be a fee for mortgage advice. The precise amount of the fee will depend on your circumstances.

Think carefully before securing other debts against your home/property.

All the information in this article is correct as of the publish date 25^th June 2026. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the below links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

References: 

1. FCA. (2026). CP26/18: Mortgage rule review – supporting first-time buyers and underserved consumers. [online] Available at: https://www.fca.org.uk/publications/consultation-papers/cp26-18-mortgage-rule-review-responsible-lending   [Accessed 23 June 2026].

Heatwaves, home insurance and protecting your property during extreme hot weather

When the UK experiences a heatwave, most of the attention understandably turns to health, hydration and staying cool. That should always come first. Hot weather can affect everyone, particularly older people, young children, pregnant women and those with underlying health conditions¹.Think about protecting your property during extreme hot weather.

However, prolonged periods of hot, dry weather can also create risks around the home. For homeowners, landlords and tenants, it is a useful reminder to check that your property is protected, well maintained and properly insured.

Heat can affect your home as well as your health

A short spell of sunshine is unlikely to cause major property issues on its own, but prolonged hot and dry conditions can increase the risk of certain problems. Think about protecting your property during extreme hot weather.

One of the main property risks linked to extended dry weather is subsidence. This happens when the ground beneath a building sinks, which can pull the property’s foundations down with it. It is more likely to become an issue where soil loses moisture and contracts, especially in areas with clay-rich soil or where trees and shrubs are drawing water from the ground².

Not every crack in a wall is a sign of subsidence, but homeowners should keep an eye out for cracks that are wider than 3mm, diagonal, wider at the top than the bottom, or visible both inside and outside the property. Doors or windows suddenly sticking can also be a sign that the building has moved².

If you notice anything concerning, do not ignore it. Contact your home insurer as soon as possible and follow their guidance before arranging repairs.

Check what your home insurance actually covers

Home insurance policies vary, so it is important to understand what is and is not included in your cover.

Buildings insurance will usually protect the structure of your home, including walls, roof, floors and permanent fixtures. Contents insurance protects belongings inside the property. Some policies may include cover for subsidence, alternative accommodation if the property becomes uninhabitable, accidental damage, garden items or freezer contents, but these are not always included in the same way across every policy³.

During a heatwave, it is worth checking:

• Whether your buildings insurance includes subsidence cover.
• What excess would apply to a subsidence claim, as this can be higher than for other types of claim.
• Whether garden items, outbuildings, sheds or external equipment are covered.
• Whether freezer contents are covered if appliances fail during hot weather or a power issue.
• Whether accidental damage is included.
• Whether your policy includes alternative accommodation if the property cannot be lived in following an insured event.

The right cover is not just about finding the cheapest premium. It is about making sure the policy would respond properly if something went wrong.Think about protecting your property during extreme hot weather.

Simple steps that may help reduce risk

There are practical steps homeowners can take during hot weather to look after their property.

Keep gutters, pipes and drains well maintained, as leaks can affect the ground around a property and may contribute to movement over time. If you own trees or large shrubs close to your home, keep them properly managed and seek professional advice before removing mature trees, as sudden changes can sometimes create further ground movement.

Inside the home, keep rooms cooler by closing curtains or blinds in rooms that face the sun, opening windows when the air is cooler and checking that fridges, freezers and fans are working properly. If you are going away during a heatwave, consider whether a trusted neighbour, friend or family member could check the property, particularly if you have vulnerable appliances, pets or plants.

Do not wait until renewal to review your cover

Many people only think about their insurance when the renewal letter arrives. In reality, your insurance should be reviewed whenever your circumstances change.Think about protecting your property during extreme hot weather.

You may need to review your cover if you have recently extended your home, bought expensive items, started working from home, added garden buildings, installed solar panels, taken in a lodger, or changed how the property is occupied.

Landlords should also check that they have appropriate landlord insurance rather than relying on standard home insurance. Standard residential cover may not be suitable for a let property.

Speak to your broker if you are unsure

Your mortgage is likely to be one of your biggest financial commitments, so protecting the property behind it matters. A suitable general insurance policy can help provide peace of mind that, if the unexpected happens, you are not left facing the full cost alone.

If you are unsure whether your current home insurance is suitable, or whether your cover reflects your property and circumstances, speak to your mortgage broker or insurance adviser. They can help you understand your options and review whether your buildings and contents protection still meets your needs.Think about protecting your property during extreme hot weather.

Important information

This article is for general information only and does not replace personalised advice. Insurance policies vary by provider, cover level, exclusions and excesses. Always check your policy documents and speak to your insurer or adviser if you are unsure.

Should you fail to disclose or misrepresent a fact, then your risk the insurer only paying part of a claim, declining to pay all the claim and possibly, declaring the policy invalid.

All the information in this article is correct as of the publish date 25^th June 2026. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

References: 

1. GOV.UK (2025). Heat-Health Alert action card for health and social care providers. [online] GOV.UK. Available at: https://www.gov.uk/guidance/heat-health-alert-action-card-for-health-and-social-care-providers [Accessed 23 June 2026].
2. Abi.org.uk. (2025). How subsidence can affect your home – what you need to know | ABI. [online] Available at: https://www.abi.org.uk/products-and-issues/choosing-the-right-insurance/home-insurance/subsidence/how-subsidence-can-affect-your-home/ [Accessed 23 June 2026].
3. MoneyHelper (2026). What is buildings insurance? | MoneyHelper. [online] Available at: https://www.moneyhelper.org.uk/en/everyday-money/insurance/what-is-buildings-insurance.html [Accessed 23 June 2026].

‌ Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

A major change could be coming to the way we buy and sell homes

Buying or selling a home should be one of life’s exciting milestones. A major change could be coming to the way we buy and sell homes

Too often, however, it becomes one of the most stressful.

A buyer finds a property, agrees a price, starts the mortgage process, pays for legal work and waits for everything to move forward. A seller accepts an offer, begins making plans and may even find their next home. Then, weeks or months later, something goes wrong.

A buyer pulls out. A seller changes their mind. A problem appears in the paperwork. The chain breaks down. Or another offer comes in at the last minute.

It is frustrating, expensive and, for many people, deeply upsetting.

That is why the Government’s planned reforms to the home buying and selling process in England and Wales are worth knowing about. The aim is to make the system faster, clearer and more certain, with fewer transactions collapsing after buyers and sellers have already spent time and money¹.

More information before a home is listed

One of the biggest proposed changes is the introduction of more upfront information when a property goes on the market.

At the moment, many important details only become clear after an offer has been accepted. That can include the condition of the property, leasehold costs, service charges, ground rent, building work, guarantees and whether the seller is part of a chain.

Under the new proposals, sellers and estate agents would be expected to provide more of this information at the beginning.

For buyers, that could mean a clearer picture before making an offer.

For sellers, it could mean gathering documents earlier and being better prepared before the property is listed.

In theory, this should reduce the number of nasty surprises that appear late in the process.

Earlier agreements between buyers and sellers

Another important proposal is the introduction of binding agreements earlier in the transaction.

Currently, in England and Wales, an accepted offer is not usually legally binding. Either the buyer or the seller can still walk away before exchange of contracts.

That can create real uncertainty.

A buyer may have spent money on a survey, solicitor and mortgage work, only for the seller to accept another offer. Equally, a seller may take their home off the market and turn away other buyers, only for the original buyer to withdraw.

The Government wants to reduce this by creating more commitment earlier in the process.

The detail will matter, because there still needs to be room for genuine issues such as survey problems, legal defects or changes in lending circumstances. However, the intention is to make late-stage withdrawals less common and give both sides greater confidence once a sale has been agreed. A major change could be coming to the way we buy and sell homes

A more digital home moving process. A major change could be coming to the way we buy and sell homes

The paperwork involved in buying and selling a home can be slow.

Documents may need to pass between estate agents, solicitors, mortgage lenders, surveyors, local authorities and other parties. Information is often requested several times, checked manually and chased repeatedly.

The proposed reforms include a move towards better digital property information, digital identity checks, electronic signatures and improved data sharing between the professionals involved¹.

This may sound technical, but it could make a real difference. A major change could be coming to the way we buy and sell homes

If key information can be shared more quickly and securely, transactions should be easier to track and less likely to be held up by missing or duplicated paperwork.

Higher standards for estate agents

The Government is also looking at professional standards in the estate agency sector.

This could include a code of practice and mandatory qualifications for agents¹.

Many estate agents already operate to a high standard, but the aim is to create more consistency across the market. For buyers and sellers, that should mean clearer expectations, better communication and a more professional service.

When you are dealing with one of the largest financial transactions of your life, the quality of the people involved matters.

What happens next?

These reforms are a positive step, but they will not change the market overnight.

Some changes may come in sooner than others, while the bigger reforms are expected to take time to introduce properly.

So, for now, buyers and sellers still need to work with the current system.

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

There may be a fee for mortgage advice. The precise amount of the fee will depend on your circumstances.

Think carefully before securing other debts against your home/property.

All the information in this article is correct as of the publish date 25^th June 2026. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HLPartnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

References:

1. GOV.UK (2026). Homebuying shake-up to slash delays, cut costs and stop sales falling through. [online] GOV.UK. Available at: https://www.gov.uk/government/news/homebuying-shake-up-to-slash-delays-cut-costs-and-stop-sales-falling-through            [Accessed 23 June 2026].

Have mortgage rates reduced? Is it time to review your options?

There have been encouraging signs in the mortgage market recently, but have mortgage rates reduced, a number of lenders are reducing selected mortgage rates.

This does not mean that every mortgage rate has fallen, or that every borrower will automatically be able to access a lower rate. Mortgage pricing changes regularly and the rate available to you will depend on your individual circumstances, including your income, credit profile, deposit or equity, loan size, property type and the lender’s criteria.

However, recent activity from lenders does suggest that parts of the mortgage market have become more competitive again. For homeowners, buyers and landlords, this could make now a sensible time to review what may be available.

Have mortgage rates reduced and what has happened?

Recent industry reporting shows that several lenders have reduced selected mortgage rates¹.

Barclays has reduced a range of residential purchase mortgage rates, with selected two, three and five-year fixed-rate products reduced by up to 0.37 percentage points¹.

Yorkshire Building Society has also reduced selected mortgage rates, while other lenders have made changes across different areas of the market². Recent product updates have reported reductions from lenders including Keystone Property Finance, The Mortgage Lender and Skipton, with some reductions applying to residential products and others applying to buy-to-let or specialist mortgage ranges³.

The important word is “selected”. These changes do not mean that all mortgage rates are falling, or that the lowest headline rate will necessarily be the most suitable option. Fees, incentives, early repayment charges, loan-to-value, affordability and lender criteria all need to be considered before deciding what is right for you.

Why do mortgage rates change? Have mortgage rates reduced?

Mortgage rates are influenced by a range of factors. These include the Bank of England base rate, swap rates, lender funding costs, inflation expectations, competition between lenders and the wider economic outlook.

This is why mortgage rates can move even when the base rate itself has not changed. It is also why lenders may reduce some products while leaving others unchanged.

For borrowers, this means it is important to look at the market as it stands today, rather than relying on assumptions about where rates might go next.

What this could mean if your mortgage deal is ending

If your current mortgage deal is due to end within the next six months, it may be worth reviewing your options early.

Many lenders allow borrowers to secure a new rate several months before their current deal ends. This can help give you a clear plan and may reduce the risk of moving onto your lender’s standard variable rate, which is often more expensive than fixed or tracker alternatives.

In some cases, if a better rate becomes available before your new mortgage completes, your adviser may also be able to review the position again. This will depend on the lender, the product and your circumstances.

What this could mean if you are buying a home

If you are buying your first home or moving home, selected rate reductions may help improve affordability, but the overall picture will still depend on your income, deposit, outgoings, credit profile and the property you want to buy.

A lower interest rate can reduce monthly payments, but it is not the only factor to consider. Some lower-rate products come with higher fees, and these may not always offer the best overall value depending on the size of your mortgage and how long you expect to keep the product.

A mortgage broker can help you compare the full cost of different options, not just the headline rate.

Should you wait to see if rates fall further? Have mortgage rates reduced?

It is understandable to wonder whether rates could fall further. The challenge is that mortgage rates can change quickly.

Some lenders may continue to reduce selected products, but rates could also move back up if market conditions change. Inflation data, swap rates, lender appetite and wider economic events can all affect mortgage pricing.

Rather than trying to predict the perfect moment, it is usually better to understand what is available now and keep your options under review.

Could You Save on Your Mortgage?

Use our mortgage quote tool to get an idea of the types of rates currently available based on your circumstances. This is not financial advice, and the results are for illustrative purposes only. Rates can change and may not be suitable for your needs.

This tool is provided for guidance only and does not constitute personal advice or a formal mortgage offer. Rates are subject to change and eligibility criteria apply.

Speak to a mortgage adviser before making a decision. Have mortgage rates reduced?

Recent rate reductions from selected lenders are positive news for some borrowers, but the right mortgage will depend on your personal situation.

Whether you are remortgaging, buying your first home, moving home or investing in a buy-to-let property, getting advice early can help you understand your options and make a more informed decision.

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

There may be a fee for mortgage advice. The precise amount of the fee will depend on your circumstances.

Think carefully before securing other debts against your home/property.

The FCA does not regulate some forms of Buy to Lets.

All the information in this article is correct as of the publish date 25^th June 2026. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

References:

1. Financial Reporter (2026). Barclays cuts residential purchase rates by up to 0.37%. [online] Financial Reporter. Available at: https://www.financialreporter.co.uk/barclays-cuts-residential-purchase-rates-by-up-to-037.html [Accessed 23 June 2026].
2. Mortgage Solutions (2026). Barclays and YBS cut mortgage rates – round-up. [online] Mortgage Solutions. Available at: https://www.mortgagesolutions.co.uk/mortgage-news/2026/06/18/barclays-and-ybs-cut-mortgage-rates-round-up/   [Accessed 23 June 2026].
3. Mortgage Introducer (2026). UK mortgage rates and product changes (Week ending 19 June 2026). [online] Mortgage Introducer. Available at: https://www.mpamag.com/uk/mortgage-industry/guides/uk-mortgage-rates-and-product-changes-week-ending-19-june-2026/578939  [Accessed 23 June 2026].

‌Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.