FCA publishes Mortgage Rule Review Feedback Statement and Roadmap with 2026 consultation areas

The Financial Conduct Authority published its Mortgage Rule Review Feedback Statement and Roadmap on 15 December 2025, setting out reforms aimed at shaping the future mortgage market and listing areas for consultation in 2026¹.

The Building Societies Association, which represents all 42 UK building societies, two mutual-owned banks and 7 credit unions, said its members' priorities had been included among those consultation areas¹. The BSA said the FCA had focused on targeted reforms to support first-time buyers and the self-employed in getting a mortgage, including exploring "part and part" interest-only mortgages¹. The regulator also plans a review of Retirement Interest Only mortgages and has committed to support innovation and the adoption of new technology in the mortgage market¹.

The BSA said building societies and mutual-owned banks hold residential mortgages of almost £495 billion, 29% of the total outstanding in the UK, and retail deposits of over £495 billion, 23% of all such deposits¹. It said they account for 46% of all cash ISA balances, employ around 52,300 full and part-time staff and operate through approximately 1,300 branches, a 35% share of UK branches, with the employment and branch figures covering building societies only¹.

The FCA's own Feedback Statement and Roadmap has not been reported here beyond the BSA's description of it, and no detail has been reported on the timing of individual consultations beyond 2026, on the scope of the Retirement Interest Only review, or on what "part and part" lending would involve in practice¹.

Why it matters for households

The areas named for consultation concern how lenders assess borrowers, so any eventual rule changes would affect people applying for a mortgage rather than existing borrowers immediately. First-time buyers and self-employed applicants are the groups singled out for targeted reform, and "part and part" interest-only mortgages, where part of the loan is repaid on an interest-only basis, would sit alongside standard repayment borrowing if the FCA takes the idea forward¹. Retirement Interest Only mortgages, which are designed for older borrowers and typically repaid when the property is sold or the borrower dies, are subject to a planned review¹. Nothing changes on 15 December 2025: the document sets out feedback and a roadmap, and the BSA describes the 2026 items as areas for consultation, not final rules¹.

What happens next

Consultation on the areas identified is expected during 2026¹. The BSA said it would encourage the FCA to take a phased permissive approach and said industry collaboration alongside regulatory change was needed¹.