Mortgage rules under review to get economy moving

Published On Jan 17, 2025, 5:42 AM

The UK Financial Conduct Authority (FCA) is set to review strict mortgage lending rules to stimulate economic growth, responding to requests from government officials. This review may lead to easier access to mortgages, helping both first-time buyers and those looking to move up the property ladder. Additionally, the FCA is considering raising the contactless card transaction limit to encourage spending. These measures aim to balance consumer protection with economic growth, yet raise concerns about repeating past financial mistakes.

Stock Forecasts

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If mortgage lending rules are relaxed, it could increase housing market activity and consumer spending. This would potentially lead to gains in the UK housing sector and related financial services. Investors in real estate investment trusts (REITs) and home builders could benefit from increased demand.

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