FCA: Simplifying responsible lending and advice rules for mortgages

FCA has published a letter from Nikhil Rathi to Emma Reynolds.  He notes that the regulator is taking steps today, and in the coming weeks, to improve access and flexibility for mortgage borrowers.  FCA intends to shortly launch a Call for Evidence on current and alternative approaches to stress testing.  Later in the month, FCA will consider how improved smart data sharing can enhance products and services.  In May, FCA will consult on making it easier for consumers to remortgage with a new lender, reduce their overall cost of borrowing through term reductions, and discuss their options with a firm outside a regulated advice process.  It will also propose to retire guidance where the Consumer Duty now ensures consumers are protected, reducing regulatory burden and complexity.  In June, FCA will produce a discussion paper on risk appetite and responsible risk-taking; alternative affordability testing and product innovation; lending into later life; and consumer information needs.