Will New FCA Mortgage Rules Fuel a Remortgaging Boom?
What the July 2025 Changes Mean for Homeowners
It has only been a few weeks since new mortgage rules from the Financial Conduct Authority (FCA) came into effect, but their impact is already being felt. Introduced in July 2025, these changes are designed to make it easier for existing borrowers to remortgage or adjust their mortgage terms, particularly those who might have previously struggled to meet stringent affordability requirements.
By softening some of the regulatory barriers that were originally put in place after the financial crisis, the FCA has opened the door for more homeowners to take advantage of better deals. This shift could be the catalyst for a significant increase in remortgaging activity in the months ahead.
What’s Changed?
The most notable change is the removal of certain affordability tests when borrowers are switching to a new mortgage deal with the same or a lower level of risk. In practice, this means that lenders can now approve remortgage applications without applying the same stress testing that would be required for a new home purchase.
Additionally, some of the rules around advice triggers have been relaxed. This gives lenders and brokers more flexibility when working with borrowers who are simply switching deals or making small changes to their existing mortgage, rather than taking on significantly more borrowing.
These updates are particularly good news for so-called "mortgage prisoners", homeowners who have been locked into expensive deals due to affordability rules despite having a strong repayment history.
A Window of Opportunity for Borrowers
If you are currently on a fixed-rate deal that is coming to an end, or sitting on a higher-than-average standard variable rate, now may be the time to explore your options. With lenders no longer bound by the same rigid affordability framework, you could find that better rates or shorter mortgage terms are more accessible than they were just a few months ago.
Even borrowers with more complex financial backgrounds, such as self-employed individuals or those with fluctuating income, may benefit from the increased flexibility.
Practical Tips to Take Advantage
To make the most of these changes, preparation is key. Start by reviewing your current mortgage terms and checking when your deal ends. If you are nearing the end of a fixed rate or are already on a variable rate, it’s worth getting ahead of any potential increases.
Gather your documents early, including your most recent mortgage statement, proof of income, and identification. While affordability tests may be relaxed, lenders still need to assess your application and ensure it is suitable.
And most importantly, speak to a broker who understands the new FCA guidelines. At Altura Mortgage Finance, we are already helping clients take advantage of these updated rules to secure better rates and terms, often with fewer hurdles than before.
Remortgaging with Confidence
While the mortgage market remains competitive, these new rules give many homeowners more control over their financial future. If you’ve been hesitant to remortgage due to affordability concerns or past advice requirements, now could be the right time to act.
At Altura Mortgage Finance, we are here to help you understand what the changes mean for you, identify your options, and secure a solution that fits your goals. Whether you want to lower your monthly payments or pay off your mortgage sooner, we’ll guide you through the process with clarity and confidence.
