Cheryl Macleod - ne Eames

18/12/2025

It could soon be easier for first-time buyers and the self-employed to get a mortgage

Mortgage regulator wants to modernise its rules First-time buyers, self-employed individuals, and older borrowers could soon find it easier to access mortgage finance as the City regulator prepares to modernise its rules, aiming to reflect contemporary living and future societal changes.

The Financial Conduct Authority (FCA) has declared its ambition to cultivate "the mortgage market of the future", envisioning a system that adapts to rapid technological advancements, evolving employment patterns, demographic shifts, and the lifelong needs and expectations of people, including into their later years.
The regulator plans to commence consultation on proposed rule changes from early 2026, with the initial amendments anticipated to be in effect by late that same year.

Its strategy is centred on four key pillars: supporting first-time buyers and underserved customer groups; enhancing later life lending options; promoting innovation and transparency in disclosures; and safeguarding vulnerable customers.

It will also launch a market study to consider how the later life lending market could develop to meet different needs, with terms of reference being published in the first quarter of next year.

It will also explore ways to improve advice to help people plan for later life and ensure the lifetime mortgage market can meet changing needs.
The use of technology such as AI (artificial intelligence) will be encouraged, to help brokers give better and faster advice.
The regulator will also look at ways to make advertising and disclosure rules simpler, helping people to understand information online more easily.
The FCA also plans to work with others to support people affected by financial abuse and help those using a mortgage to manage or consolidate debt.

The regulator published feedback to its discussion paper on the future of the mortgage market. It said there was “wide agreement” that some potential first-time buyer groups could be better served.
The statement said: “This includes 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.”

The FCA said it had asked if it should update its interest‑only rules to support first-time buyers. Interest-only deals allow people to pay just the interest on the mortgage each month, meaning that a borrower will still need to repay the amount borrowed at the end of the mortgage or when the property is sold.
Since 2013, sales of any kind of interest‑only product to first-time buyers have been less than 0.5 per cent of all sales.

The FCA said those responding had told it that part interest‑only and part repayment mortgages could enable some first-time buyers and other consumers to access homeownership earlier.
Its statement said: “Our framework currently treats part interest‑only in the same way as pure interest‑only.
“We will consider proposing a differentiated affordability approach for certain part interest‑only lending.”
Some organisations had also encouraged the regulator to review its requirements and widen what constitutes a credible repayment strategy, including the option to consider later life mortgages.

This could potentially widen mortgage availability to certain customers, including middle‑aged borrowers for whom a full repayment mortgage may no longer be viable, the regulator said.
Some organisations have also pointed to “low start” mortgages as an option to support certain first-time buyers and underserved customers.

These mortgages could start as pure interest‑only and convert to repayment after a set period and are seen as particularly suitable for customers with high expected salary growth. The regulator said it will consider updates to the treatment of potential future increases to income.
The FCA will also look at moves to support industry innovation and adoption of rental payment data in firms’ affordability assessments.

12/09/2025

You must visit this lovely shop in Dulverton.

I have been busy refurbishing more lighting and have finished these three stylish floor lamps.
Left to right...

Danish Afromosia with a simple brass band in the middle with original grass cloth shade.

Geometric styled Mahogany lamp with a new shade made from vintage fabric.

Teak and brass lamp with original Hessian shade with brass trim.

Message for more details

20/08/2025

With Visit Dulverton – I just made it onto their weekly engagement list by being one of their top engagers! 🎉

10/08/2025

Historian Andrew Lownie has made some unflattering claims in a book about Prince Andrew.

10/08/2025

08/08/2025

these colours never get old

07/08/2025

A fresh mortgage price war has come to the rescue of hundreds of thousands of borrowers whose cheap pandemic home loans are about to expire. More than 760,000 homeowners’ fixed-rate deals are due to come to an end this year. And many of those will be braced for crippling rises of up to £300 a mon...

03/08/2025

Spotted in The Guardian! 🌳 The fantastic Tarr Farm Inn Ltd has made the list of favourite waterside pubs in the UK!

So well deserved – though just to clear things up… it’s in Somerset, not North Devon 😉 (but we’ll let it slide – after all, Exmoor does straddle both!)

👉🏼 www.theguardian.com/travel/2025/aug/01/readers-favourite-uk-riverside-waterside-pubs

01/08/2025

Is it worth getting insurance for sickness, critical illness etc? Money has written this interesting article:

The dangers of a single breadwinner
With high earners’ debt and spending at elevated levels, is the fact that so much of the household income is made by one person concentrates the risk, and isn’t unusual.
According to the Barometer, among the highest earners 71% are relying on a major breadwinner. If anything was to happen to them, it would put the whole household in financial trouble.
Is it worth getting insurance?
Insurance is high earners’ final money weakness – and also the solution to guarding themselves against the risks from the other financial pain points.
Jude Dawute, managing director at wealth manager Benjamin House, said: “Many higher earners carry large debts and rely on a single income and often overlook the very thing that protects their household – insurance.
Only 53% of high earners have enough life insurance to be resilient, according to Hargreaves’ research. The analysis also shows those with children are particularly likely to fall short, and 49% of parents in the top fifth of earners don’t have enough life cover.
Often people will consider life insurance needs to pay off their mortgage after their death, but may not think about a policy which covers the cost of bringing children up. The average life insurance gap for households with dependents is £89,800, and for homeowners with children it's £194,200, according to Hargreaves’ data.
The average cost of closing the life insurance gap is £134 a year and for homeowners with at least one child it costs an average of £321. Given the other assets high earners have, it might be perfectly feasible to cover their needs.
“Life insurance is a basic must-have,” said Dawute, “it clears debts, replaces lost income, and gives dependents breathing room”.
“Even couples without children should consider it – especially if one is financially dependent on the other. Taking it out early means locking in a lower premium before any health issues crop up.”
Meanwhile, only half (51%) of high earners have critical illness insurance, according to Hargreaves Lansdown’s figures, which provides you with a lump sum of money if you are diagnosed with certain illnesses or disabilities and can’t work.
“Critical illness cover is arguably even more important than life insurance,” said Dawute, pointing to statistics from insurer LV= that found you're more than four times more likely to suffer a serious illness than to die before retirement.
“That could be cancer, stroke, heart attack – all of which can leave you unable to work for months or longer,” he said.
A lump sum payout means you can take time to recover, cover ongoing bills, or make lifestyle adjustments without financial panic. And if you're the main breadwinner? It’s even more critical.
Please contact us for advice on protecting you and your family

23/07/2025

Should you help your children to buy a home?

Critics say that parents who give away money for house deposits are ensuring that prices stay high. We seek opposing views
July 23 2025, The Times
Homeownership is a distant dream for many, despite efforts by the Treasury and regulators to loosen lending rules.

The Bank of Mum and Dad now helps more than 50 per cent of first-time buyers on to the property ladder, according to the estate agency Savills. But is this a necessary act of generosity or is it helping to fuel the housing crisis? We hear both sides of the argument.

No
Christopher Worrall from the centre-right think tank Onward
The Bank of Mum and Dad is not a benevolent institution. It is an inequality engine. Helping your kids to get on the property ladder may feel like good parenting, but it fuels a system that rewards birthright over merit and privilege over effort.
And this is not just about fair play — although that matters. It is about distortion. Housing should be about what you earn, not who you are born to, and yet we’re hurtling towards a feudal set-up where access to shelter hinges on parental wealth. In 2023 more than half of first-time buyers had financial help from family — so much for social mobility.
• Read more money advice and tips on investing from our experts
Meanwhile, the parents are often the ones doing the sacrificing. Draining pensions, dipping into savings, compromising their retirement or their future care needs to prop up a politically induced broken housing system.
Others face tricky family politics. What if one child gets help and another doesn’t? Suddenly the family WhatsApp group turns into a minefield. And don’t forget the long-term cost, because if that gifted deposit pushes mum or dad below the threshold for local authority-funded care, the state picks up the tab. So we all end up paying for this bad idea.
It also warps the market. When we inflate demand from cash-boosted buyers, prices are kept high and the truly independent are shut out. It’s no coincidence that areas with the most intergenerational support are often the least affordable — and the most resistant to change.
Many of those lobbying against new homes do so under the guise of “heritage” or “environmental protection”. All the while ignoring the paradox: if you really want to help your children, stop blocking homes for them to live in.
This is the real betrayal of Britain’s working class. We have normalised parental bailouts instead of fixing the system. Homeownership should be a reward for work and not a birthright.
Parental gifts may be well intentioned. But they entrench inequality, destabilise retirement and price out millions. Let’s call it what it is: a personal favour that perpetuates a national failure.
• Rachel Reeves is right, but she is walking a tightrope — with our money

Yes
Paula Higgins, the chief executive of the HomeOwners Alliance, a campaign group
Helping your children get on the property ladder is a deeply personal decision — but if you’re in a position to offer support, I’d argue it is a good idea.
Intergenerational fairness is one of the strongest reasons why helping your child buy a home is the right thing to do. Many parents benefited from a housing market that has since become vastly less accessible.
In the 1980s the average age of a first-time buyer was about 27. Today it’s closer to 34 — and that’s often with help. Property prices have risen much faster than wages, making it almost impossible for many twentysomethings to buy without a financial leg-up.
If you plan to pass on wealth to the next generation, why not do it when it could make the biggest difference? An inheritance often arrives when adult children are already financially stable or even nearing retirement themselves. But helping them in their earlier years will allow them to stop wasting money on rent and start investing in a secure, long-term home.

A study by the HomeOwners Alliance found that 54 per cent of homeowners with adult children had either already helped them buy a home or expected to in the future. Among homeowners whose children do not yet own property, 59 per cent worried about their chances of ever buying a home.
But help doesn’t have to mean writing a big cheque. There are several ways in which parents can support their children without handing over large sums. You might consider acting as a guarantor on a mortgage or getting a joint mortgage with your child.
There are also distinct financial advantages to the so-called Bank of Mum and Dad. A gift used for a house deposit is inheritance tax-free, provided you live for seven years after giving it. This can also reduce the size of your estate and potentially lower inheritance tax on other assets.
Helping with a deposit means your child may qualify for better mortgage rates, so that they have lower monthly repayments. A larger deposit can also help them to buy a better home — whether that means a larger space or a more suitable location — and reduce the need (and cost) of them moving again soon.
Of course, this all depends on your own financial situation. And one final piece of advice: be fair. Helping one child and not others can lead to family tensions. If you’re lending, be clear and be consistent.

If you need advice on mortgages with a guarantor or with cash please get in touch.
[email protected]