The Building Societies Association (BSA) welcomes the FCA’s Mortgage Rule Review proposals, which represent a pragmatic step towards increasing access to homeownership and supporting underserved borrowers, while maintaining strong consumer protections.  

We are particularly pleased to see the FCA’s proposals to widen access to part interest‑only lending, remove unnecessary barriers to retirement interest‑only mortgages, and increase flexibility for borrowers with variable or irregular incomes; areas where the BSA has repeatedly called for changes to reflect how people increasingly live and work today. 

Paul Broadhead, Head of Mortgages & Housing at the BSA, said: 

“The FCA proposals are a welcome step towards a more dynamic, accessible and inclusive mortgage market. Building societies are already innovating to provide flexible, people-first mortgage products, and we are pleased that the proposals show clear support for future innovation and flexibility. 

“We will be working with members and the FCA to ensure that the proposals will deliver the intended objectives and give lenders the confidence to continue to innovate responsibly to support more people into homeownership."

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Notes to Editors:

The Building Societies Association (BSA) represents all 42 UK building societies, including both mutual-owned banks, as well as 7 of the largest credit unions. Building societies and mutual-owned banks have total assets of almost £680 billion and together with their subsidiaries, hold residential mortgages of almost £495 billion, 29% of the total outstanding in the UK. They also hold £495 billion of retail deposits, accounting for 23% of all such deposits in the UK. Building societies and mutual-owned banks account for 46% of all cash ISA balances.  

With all of their headquarters outside London, building societies employ around 52,300 full and part-time staff.  In addition to digital services, they operate through approximately 1,300 branches, holding a 35% share of branches across the UK.