The Intermediary Mortgage Lenders Association (IMLA) has welcomed the FCA’s Feedback Statement and roadmap on DP25/2, describing it as a positive and constructive step towards widening access to sustainable homeownership while maintaining high standards of responsible lending.

IMLA said it was encouraged by the tone of the statement, which reflects the wide range of views expressed by respondents and demonstrates a clear determination to strike the right balance between flexibility and prudence.

In particular, the association welcomed the FCA’s focus on advice and its intention to explore changes that could better support first-time buyers and borrowers who have historically found it harder to access the mortgage market.

The association also welcomed the FCA’s recognition that traditional affordability approaches do not always reflect how people actually manage their finances over time. Moving towards a more nuanced ‘shape of affordability’, 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 customer outcomes.

IMLA research underlines that the market is well positioned to support this direction of travel. Its New Normal 2026/27 report shows that mortgage arrears are projected to continue falling, lending remains resilient and around 87% of regulated mortgage lending is conducted through intermediaries, reinforcing the central role of advice in the market.

IMLA also noted that the FCA’s focus on underserved groups builds on long-standing industry discussion. Its report, ‘Why underserved borrows should not rule themselves out’ (November 2021), highlighted that many households who could sustainably afford a mortgage nevertheless believed homeownership was out of reach. IMLA believes that greater flexibility, combined with high-quality advice, can help address that confidence gap.

Commenting, IMLA’s executive director Kate Davies commented: “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.”

She concluded: “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.”