Why FCA mortgage reform must go hand in hand with home buying and selling process improvements – Rudolf

While the proposals cover a broad spectrum, from stress testing and affordability to artificial intelligence (AI)-assisted advice and later life lending, there is a welcome, if perhaps overdue, recognition that reforms in mortgage lending must also connect to improvements in the home buying and selling process.

For conveyancing firms and stakeholders like the CA, this feels like both a relevant consultation and a strategic opportunity. 

An opportunity for better collaboration 

For years, the CA has advocated for a more integrated, transparent and digital home moving journey. We’ve long argued the customer suffers when the various parts of the transaction work in silos – lenders, brokers, conveyancers, estate agents and surveyors all trying to do the right thing, but often pulling in slightly different directions.

What this FCA paper should perhaps do is open the door for a more collaborative conversation across sectors. The regulator is now explicitly inviting views on how conduct regulation can support digitisation of the house buying and selling process and the broader ecosystem that supports it.

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That’s a green light for organisations like us, and others, to step in and help shape how that happens. 

Ready for greater levels of mortgage activity 

One of the most promising aspects of this DP is the way it positions enhanced mortgage access, not simply as a credit decision but as a catalyst for broader market activity and economic growth.

There seems to be an intent to explore more flexible affordability assessments, particularly for first-time buyers, renters, the self-employed, and older borrowers. Ideas on rent-based affordability checks, interest-only flexibility, and the easing of the stress test could unlock access for thousands who are currently stuck on the ground, not on the ladder. And while these may sound like issues for lenders and brokers, the implications for our sector are equally profound. 

Greater levels of mortgage approval will translate into increased transaction volumes. But the key point is not just more business, it’s better business. If we can help deliver a faster, simpler and more certain process from mortgage application to completion, then we support better customer outcomes across the board. That aligns with the aims of the FCA’s Consumer Duty, which is another thread that runs strongly through the paper. 

The FCA acknowledges the current mortgage framework can slow down innovation, with overly rigid rules that don’t always reflect today’s customer journeys.

In much the same way, the conveyancing process can be improved when it is more integrated with upstream and downstream services. For example, enabling better data flow between lenders and legal firms, more consistent identity and financial verification standards, and earlier provision of key material property information could significantly reduce transaction delays and fall-throughs.

These are all priorities the CA has championed through our work on Upfront Information, digital ID, etc. 

A (property) chain reaction 

Crucially, the DP doesn’t treat mortgage access in isolation. It recognises the knock-on effects of increased mortgage approvals on housing supply, consumer confidence, and market mobility.

We understand better than most how even modest policy changes can ripple across the home moving and selling process. If lenders are permitted to be more flexible, that needs to be met with a conveyancing process that is efficient, digitally enabled, and trusted. The potential to combine reforms on both sides of the process is what makes this moment so important. 

There is also a clear signal in the paper that the regulator wants practical solutions. It refers explicitly to cross-sector collaboration, TechSprints, sandbox testing, and outcome-based rulemaking.

That’s a call to action for all stakeholders, including those within the conveyancing sphere, to step up and help design the future, not wait to be told what it will look like. We’ve already made strong headway on interoperability, better onboarding practices, and pre-sale readiness. We now have a chance to show how these initiatives can support the regulator’s goals on affordability, consumer protection, and innovation. 

At its heart, this DP is about unlocking sustainable homeownership in a way that balances innovation with resilience. But, importantly, it also accepts that mortgage lending doesn’t exist in a vacuum.

The home buying process must keep pace, and that means all have a role to play. The FCA has thrown the door open to new ideas. The CA is well-placed, through its policy work and industry relationships, to help lead that conversation. This is a moment where smart, joined-up thinking can make a real difference.

For borrowers. For professionals. And for the future of homeownership in the UK.