The FCA opened its CP26/18 mortgage rule consultation on 9 June 2026, with feedback due by 28 July 2026. These are proposals, not final rules. Final rules are expected in a Policy Statement in the second half of 2026.
For self-employed people, contractors and older borrowers, lenders may be given more flexibility, but they would still need to check that a mortgage is affordable. If you are reviewing your mortgage options, treat the proposals as something to watch, not rely on.
What is the FCA looking at?
The proposals cover interest-only and part-and-part mortgages, retirement interest-only mortgages, variable and irregular income, foreign currency loans, credit-impaired borrowers and bridging loans. Responsible lending would remain in place, so flexibility should not be read as permission to borrow more than you can manage.
What could change for self-employed borrowers?
Self-employed borrowers often have income that varies across the year. The FCA is proposing changes that could give lenders more room to assess variable or irregular income, including for people who are self-employed, contract-based or paid in a less standard way.
This could help some borrowers whose income is seasonal, project-based or uneven. It does not mean every self-employed applicant would be accepted. Lenders may still ask for accounts, tax calculations, bank statements, contract details and evidence of affordability. They may also consider your credit history, deposit and commitments.
If your income is not straightforward, first-time buyer mortgage advice or home mover mortgage advice may help you understand what documents could be needed.
What could change for older borrowers?
The FCA is also looking at later life borrowing, including retirement interest-only mortgages. It launched a later life mortgages market study on 20 March 2026, focused on lifetime and retirement interest-only mortgages, with an update published on 4 June 2026.
This may be relevant if you are approaching retirement, already retired, or considering borrowing later in life. However, later life lending can involve risks, including affordability in retirement, interest costs, property value changes and the potential effect on inheritance or housing choices.
You should not assume that borrowing into retirement is suitable simply because rules may change. Independent legal, tax or financial advice may be needed.
What should you do now?
You do not need to wait for the rules to change before reviewing your position. If your current mortgage deal is ending, a remortgage review may help you understand options under current lender criteria.
If you are buying, read about buyers advice, conveyancing and why you might use a mortgage broker. Landlords should remember that buy-to-let mortgages can be assessed differently. For unfamiliar terms, the mortgage jargon buster may help.
FAQs
Are the FCA mortgage changes already in force?
No. The current FCA paper is a consultation. Final rules are expected after feedback has been reviewed.
Will self-employed borrowers find it easier to get a mortgage?
Some may benefit, but approval still depends on affordability, evidence and lender criteria.
Could older borrowers access more mortgage options?
Possibly. Suitability, affordability and later life risks still matter.
Should I delay my mortgage application?
Not necessarily. Current lender rules still apply.
Can Alexandra Hamilton help me understand my options?
You can contact Alexandra Hamilton or submit a mortgage enquiry to discuss your circumstances. Any recommendation would depend on your needs, affordability and available products.
Important information
Your property may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances and will be agreed with you before proceeding, but we estimate this to be £995.
The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
