PS25/11: Mortgage Rule Review: First steps to simplify our rules and increase flexibility

Read PS25/11 (PDF)[1]

What we are changing

Our 5-year strategy[2] commits to helping people navigate their financial lives and supporting the competitiveness of financial services. The Consumer Duty[3] sets clearer, up-to-date standards in financial services. 

With PS25/11, we have, therefore, removed guidance no longer required, and amended our rules to provide greater opportunity for innovation and to make it easier to:

• Remortgage with a new lender.
• Reduce the overall cost of borrowing through term reductions.
• Discuss options with a firm, while still having the option to seek advice if needed. 

Who this is for

This Policy Statement will primarily affect:

• Mortgage lenders and administrators.
• Home purchase providers and administrators.
• Mortgage intermediaries.

It will also be of interest to:

• Industry groups and trade bodies.
• Consumer groups and organisations.
• Mortgage consumers.

Next steps

On 22 July 2025, the rule and guidance changes came into effect and the non-Handbook guidance was withdrawn.

Background

This work forms part of our wider mortgage rule review. In our letter to the Prime Minister – among a series of commitments to support growth in the UK economy – we committed to begin simplifying our mortgage rules.

In March, we reminded lenders of the flexibility in our stress testing rules. We have seen lenders react to this, helping more customers to access mortgages.

In May 2025, we consulted on proposals to change our regime under the Mortgage Rule Review (CP25/11 PDF[4]). In July 2025, we published feedback on the responses we received and this Policy Statement.

Our Discussion Paper[5] on the wider mortgage market and conduct regime, published in June 2025, remains open, and we welcome responses until 19 September 2025.