Responding to the Financial Conduct Authority’s (FCA’s) Feedback Statement and roadmap on DP25/2, the IMLA said it was “encouraged by the tone of the statement”, as it reflected the broad range of views expressed by respondents.
It also said it showed the regulator’s attempt to find the right balance between flexibility and prudence.
The IMLA welcomed plans to support first-time buyers and under-served groups, as well as its recognition that current approaches to affordability did not always reflect modern financial habits.
It said it was sensible that the FCA was considering later life borrowing, variable incomes and economic uncertainty, and added that this put advice at the centre of good customer outcomes.
The IMLA said its New Normal 2026/27 report demonstrated the market’s readiness to support these changes, as it showed that mortgage arrears were set to continue falling, lending would remain resilient and 87% of regulated mortgage lending would be completed through intermediaries.
Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let
Sponsored by Aldermore
A ‘thoughtful and encouraging’ roadmap from the FCA
Kate Davies (pictured), executive director of the IMLA, said: “This is a thoughtful and encouraging roadmap from the FCA. It’s clear they have listened carefully to the responses to the discussion paper and are genuinely seeking to strike the right balance between making some rules less rigid while continuing to support responsible lending.
“We’ve been talking for some time about the need to better serve groups who may assume a mortgage isn’t for them, when in fact it could be. With good advice and a more realistic approach to affordability, the market is in a strong position to help more people explore their options.”
She added: “As we head towards the end of the year, it’s a welcome reminder that there are reasons to be positive about the mortgage market – and a good moment to encourage more people to speak to an adviser and see what might be possible.”
The IMLA said it looks forward to engaging with the FCA as consultations are published over the coming months.
