The Financial Conduct Authority will encourage brokers to adopt AI as part of wider reforms to the UK mortgage market.
editorial
This content is selected, created, and edited by the Finextra editorial team based on community relevance and interest.
The reforms aim to make life easier for first-time buyers and help older homeowners access housing wealth for a more comfortable retirement.
The FCA said it plans to simplify mortgage rules to enable more flexible products that reflect different working patterns and income levels at different stages of life, and review retirement interest-only requirements to improve access.
On the innovation front, the FCA intends to encourage the use of data and technology such as AI to help brokers provide better and faster advice while retaining a human touch. It's also looking at ways to simplify advertising and disclosure rules to make it easier for consumers to understand information online.
David Zeal, executive director of payments and digital finance, said: “Reforming the mortgage market could help address the fact that as a society we save too little for retirement, yet people have vast amounts of assets tied up in property.”
He said the FCA would begin consulting with the public on proposed rule changes from early 2026, with the aim of implementing the first reforms later that year. Secondary market research will also be conducted to consider how the FCA can support markets to adapt and innovate so that consumers have access to fair value products that meet their needs. Terms of reference are expected to be published in the first quarter of next year.
