The FCA said that in other areas, further exploration of challenges and solutions was required, for example to deliver more holistic advice when customers plan for and make decisions regarding their later life finances. Policy development on all themes will commence by the end of 2026 continuing through 2027 as required

In its feedback report, the FCA said there was wide agreement that some potential FTB groups could be better served.

This included those who cannot raise a large deposit, do not have family support, are self‑employed, have irregular or contract‑based income, are recovering from a negative life event, have overseas assets and income, or have dealt with a credit impairment.

Responses also highlighted those living in tied accommodation, PhD students, carers,long‑term renters and older borrowers as groups who may be underserved.

There was consensus that change could improve access for a wider range of consumers.

Some suggestions would require regulatory change. Others could be delivered within the current framework, for example integration of new alternate data, using rental payment history, or using a wider variety of income.

Respondents agreed that qualified advisers should review and sign off AI‑based recommendations. Human intervention was seen as vital for ensuring advice suitability and consumer protection. Respondents also had concerns that customers may not fully understand AI‑generated recommendations or may engage superficially with AI advice.

This could lead to poor decisions, especially if consumers did not know what questions to ask or what information was relevant. Respondents also emphasised the need for clear disclosure of how AI was used in the advice process and to ensure vulnerable customers are not disadvantaged.

Commenting on the FCA’s latest report Quilter Financial Planning mortgage distribution director Zara Bray said:

“The FCA’s roadmap is ambitious and welcome but can only work in parallel with a government committed to overcoming the UK’s deep-rooted housing challenges. Even with more flexible lending approaches, limited housing stock will continue to be a major brake on homeownership. Without sustained supply-side action, the benefits of regulatory innovation will be constrained, particularly for first-time buyers facing intense competition for too few properties.

“That said, the regulator is right to explore more proportionate rules around high loan-to-income lending, interest-only structures and recognition of rental payment history. These changes could make a real difference for people who have long demonstrated affordability through high rents but remain shut out of the mortgage market.

However, a more permissive regime brings more complexity, and the FCA is clear that robust advice and support structures must develop in parallel to protect consumers from foreseeable harm.”

Bray added that the most striking part of the roadmap was the renewed focus on advice. “Many consumers will soon be navigating choices that span mainstream mortgages, retirement interest-only products and lifetime mortgage options, often for the first time. The FCA acknowledges that the current advice landscape is too fragmented, with regulatory silos making it difficult for people to receive truly holistic help on how their mortgage fits into their wider financial life.

Its intention to explore more unified advice models and realistic affordability assessments, particularly for older borrowers, is therefore a crucial step.”

JLM Mortgage Services group director Seb Murphy commented: “FS25 has some clear positives for advisers. The FCA is right to step back from enhanced advice and to say it supports holistic advice. A two-tier system would have caused real confusion and risked pushing clients down the wrong path. That decision matters.

“There are also real opportunities here. A fresh look at later life lending, RIO affordability, interest-only options and how irregular income is treated could help more clients borrow in a sensible way. But none of this makes advice less important. It makes it more important.

He added: “My concern is not what the FCA says it wants, but how this could play out in practice. Giving lenders more freedom on product design, disclosure and customer journeys must not lead to advice being treated as optional, or something to add later if problems appear. Talk of ‘tolerable harm’ and rebalancing risk needs to stay rooted in real outcomes for real people.

Murphy concluded: “If access is widened, advice standards must hold firm. Faster journeys and more choice are fine, but they need clear signposting to advice and strong checks for complex cases. Otherwise, we risk repeating old mistakes, just in a more digital form.”