The Financial Conduct Authority (FCA) is set to remove red tape on remortgaging in the latest sign public bodies are tearing up their rulebooks to align with the government’s growth agenda. 

In new measures introduced by the City regulator, mortgage holders will be able to reduce the terms of their borrowing and switch to new lenders more easily, allowing homeowners to benefit from cheaper products. 

The watchdog, which unveiled changes to mortgage rules in January, said reforms could come into effect due to its “high standards”. 

Officials said effective affordability checks, support for those who get into financial difficulty and a separate set of standards over good outcomes for borrowers allowed the City regulator to slash red tape. 

Emad Aladhal, director of retail banking at the FCA, said the new rules would help to protect borrowers and encourage competition among banks, building societies and other lenders. 

“We are helping more people navigate their financial lives by supporting those who can afford to buy a home and supporting competition in the mortgage market,” Aladhal said. 

“Consumer needs have changed over recent years, and our rules are changing too. 

“Today’s changes support growth by simplifying some of our rules, saving consumers’ time and money, while ensuring they still benefit from advice, where needed.   

“We want lenders to use these changes to innovate and better serve aspiring homeowners and existing borrowers.