New rules could make remortgaging easier – and cheaper

If you’re a homeowner struggling with your mortgage – or thinking about remortgaging to cut costs – help could be on the way. The financial regulator (the Financial Conduct Authority (FCA)) has announced it is updating rules to make remortgaging simpler and more affordable.

So, what’s changing?

The FCA is relaxing mortgage rules to give people more flexibility when dealing with their mortgage. Here’s how it could help you:

• Remortgage more easily: If you’re looking to switch to a new deal, the process should now be simpler – meaning you can shop around and grab a cheaper rate without necessarily having to get detailed advice before being allowed to switch.
• Shorten your mortgage term: You’ll find it easier to reduce how long you’re paying your mortgage for, which could help you pay less overall and avoid carrying your debt into retirement.
• Support if you need it: Lenders are being encouraged to identify people who would still benefit from more detailed guidance and make sure that extra support is provided.

Why are the changes happening?

The FCA says mortgage rules need to catch up with the changing financial landscape. These new, simpler rules aim to save borrowers time and money while still giving them access to proper advice where appropriate.

The regulator also hopes the changes will boost competition between lenders – giving you more choice – and better deals - when it comes to finding a mortgage that works for you.

A word from the FCA…

Emad Aladhal from the FCA said:

“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. 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.” 

What does this mean if you’re struggling?

In this respect, the new rules don't change anything directly. If you’re behind on payments or worried about your mortgage, the steps you should take remain the same:

• Talk to your lender: The FCA expects lenders to offer support if you’re struggling. Don’t be afraid to get in touch and ask about your options.
• Get debt advice: If you’re struggling with repayments, we can offer budgeting guidance, make sure you’re claiming all the financial support you’re entitled to, and discuss debt solutions that may help.