Rolling coverage of the latest economic and financial news

• Average mortgage for UK first-time buyer hits record high of £210,800

Britain’s financial watchdog is setting out plans today to reform the UK mortgage market to help first-time buyers and the self-employed onto the housing ladder.

The Financial Conduct Authority (FCA) is proposing to improve four areas of the mortgage market – including rule changes to allow lenders to offer ‘more flexible’ mortages.

First-time buyers & underserved consumers: Simplifying mortgage rules to allow more flexible products that reflect different working patterns and income levels at different stages of life.

Later-life lending: Reviewing retirement interest-only requirements to make them more accessible. Exploring ways to improve advice to help people confidently plan for later life. Conducting a focused market study to ensure the lifetime mortgage market can meet the changing needs of future customers.

Innovation & disclosure: Encouraging the use of data and technology, such as AI, to help brokers give better and faster advice while keeping a human touch. Looking at ways to make advertising and disclosure rules simpler, so consumers can understand information online more easily.

Protecting vulnerable consumers: Working with partners to support people affected by financial abuse and help those using a mortgage to manage or consolidate debt.

People able to buy homes previously beyond budget, aided by rising wages and looser affordability tests

First-time buyers are taking out larger mortgages than ever before as rising wages and looser affordability tests allow them to buy properties that were previously beyond their budget.

The average first-time buyer borrowed £210,800 in the year to September, a record high, according to analysis by Savills, the property agent.