Source: Sharecast
The package of measures is aimed to "help people navigate their financial lives and support growth", by giving people more choice in the market, according to a statement by the Financial Conduct Authority on Monday evening.
Under the changes proposed, borrowers will be able to reduce their mortgage term easier to lower the overall cost of borrowing, and face fewer restrictions when remortgaging with a new lender to open up access to cheaper products.
The reforms, which are part of a wider mortgage rule review, are said to be voluntary for firms, though the regulator will "encourage firms to use these flexibilities" to broaden access and strengthen competition.
“We are helping more people navigate their financial lives by supporting those who can afford to buy a home and supporting competition in the mortgage market," said Emad Aladhal, director of retail banking at the FCA.
“Consumer needs have changed over recent years, and our rules are changing too. Today’s changes support growth by simplifying some of our rules, saving consumers time and money, while ensuring they still benefit from advice, where needed."