Widening your options with access to more mortgages

Interest-only and part-and-part mortgages have historically been approached cautiously due to repayment concerns. While that caution was understandable after the financial crisis, it has also limited flexibility for borrowers who could manage these products responsibly.

However, the Financial Conduct Authority (FCA) recognises these products can be appropriate in certain circumstances and is reviewing how lenders assess them throughout 2026/27.

Why change is needed

Today’s housing market looks very different: rising house prices, longer mortgage terms, and more diverse income patterns mean some consumers need options beyond traditional repayment mortgages. The FCA is exploring options which could be appropriate when paired with realistic repayment strategies and robust advice. Updating affordability rules and broadening what counts as a credible repayment plan could help first-time buyers, later-life borrowers, and those expecting income growth to access homeownership sooner, without compromising consumer protection.

Potential changes include:

•       Wider recognition of credible repayment strategies.

•       More tailored affordability assessments.

•       Review of ‘low-start’ products that begin interest-only before switching.

Who may benefit?

•       Borrowers expecting future income growth.

•       Certain later-life borrowers.

•       People needing short-term payment flexibility.

What to do now

•       Review your long-term financial plan. Ask yourself: How will I repay the capital when the term ends?

•       Gather evidence of your income and any assets that could form part of a repayment strategy.

•       Speak to a qualified mortgage adviser early; we can help you weigh the short-term flexibility against the total cost and ensure the product fits your circumstances.

It’s important to understand that although monthly payments may feel easier short term, total interest may be higher and repayment strategies must be realistic. Advice can help you navigate the options and help you make the right decisions.

Sources and further reading

FS25/6: Mortgage Rule Review: Feedback to DP25/2 and Roadmap

Approved by The Openwork Partnership on 21/01/2026

Crystal Clear Financial Planning & Mortgages is a trading style of Martin Jones Financial Planning Consultants LLP which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.