The Intermediary Mortgage Lenders Association (IMLA) welcomes the FCA’s feedback statement and DP25/2 roadmap as a positive and constructive step towards expanding sustainable home ownership, while maintaining high standards for responsible lending.
IMLA said it was encouraged by the tone of the statement, which reflected the broad range of views expressed by respondents and demonstrated a clear determination to strike the right balance between flexibility and prudence.
The association particularly welcomes the FCA’s focus on the recommendations and its intention to explore changes to better support first-time buyers and borrowers who have historically struggled to access the mortgage market.
The association also welcomes the FCA’s recognition that traditional affordability approaches do not always reflect the way people actually manage their finances. The move to a more nuanced ‘affordability shape’, particularly in the context of later-life borrowing, variable incomes and economic uncertainty, is seen as a sensible evolution that places advice firmly at the heart of good client outcomes.
IMLA research highlights that the market is ready to support this development. Its New Normal report for 2026/27 shows mortgage arrears are expected to continue to fall and lending remains resilient, with around 87% of regulated mortgages being made through intermediaries, reinforcing the central role of advice in the market.
IMLA also noted that the FCA’s focus on underserved groups is based on long-standing industry discussions. Its report, Why Underserviced Borrowing Should Not Be Excluded (November 2021), highlights that many households who can sustainably afford their mortgage still view homeownership as out of reach. IMLA believes that greater flexibility, combined with high-quality advice, can help address this confidence gap.
Kate Davies, executive director of IMLA, commented: “This is a thoughtful and encouraging roadmap from the FCA. It is clear that they listened carefully to responses to the discussion paper and are sincerely seeking to strike the right balance between relaxing some rules while continuing to support responsible lending.”
She concluded: “For some time we have been talking about the need to better serve those groups who may think a mortgage is not for them, when in fact it may be. With good advice and a more realistic approach to affordability, the market can help more people explore their options.”
