'Computer says no': but maybe no longer

Looser lending standards mustn't become a free-for-all. The FCA's job is to find the balance — encouraging access without reigniting the blunders of 2008

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IF there's one thing the mortgage market has mastered over the past decade, it's rigidity. Try explaining to a bank that you've just started a freelance career, or that your income comes from a mixture of pensions, rental income, and part-time work. More often than not you'll be met with a polite version of: “Computer says no.”

Change may be on the horizon. The Financial Conduct Authority's new discussion paper, catchily entitled DP25/2 (whoop) could signal a major shift in how lenders assess risk, affordability and suitability. It's not law or policy - yet - but it’s a clear invitation to rethink a system which, while well-intentioned in protecting consumers, may now be locking too many out of home ownership or financial flexibility.

The FCA has recognised what many borrowers have known for years; the rules haven't kept pace with real life, and have the flexibility of uncooked spaghetti.