FCA Later Life Mortgages Market Study Terms of Reference

FCA Publications

Published March 20th, 2026

Detected March 20th, 2026

Summary

The Financial Conduct Authority (FCA) has published the Terms of Reference for a new market study into the later life mortgages sector. The study will examine competition and consumer needs in the lifetime and retirement interest only (RIO) mortgage markets. The FCA is inviting stakeholder views on the scope of the study.

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What changed

The Financial Conduct Authority (FCA) has announced the commencement of a market study into the later life mortgages sector, specifically focusing on lifetime and retirement interest only (RIO) mortgages. The Terms of Reference, published on March 20, 2026, outline the rationale, scope, and potential outcomes of the study, aiming to assess whether changes are needed to better meet consumers' evolving needs through effective competition.

While not a formal consultation, the FCA is seeking written views from interested parties, including mortgage providers, intermediaries, consumers, and industry bodies, by April 17, 2026. The study is intended to provide certainty to the industry, with an update expected by the end of 2026 and Requests for Information to be sent to firms in the coming weeks. This initiative signals a proactive approach by the FCA to understand and potentially reshape this segment of the mortgage market.

What to do next

Submit written views on the market study's scope and issues by April 17, 2026.
Prepare for potential Requests for Information from the FCA regarding later life mortgage market operations.

Source document (simplified)

MS26/1: Later Life Mortgages Market Study

Proposed Terms of Reference announced 20/03/2026 20/03/2026 Invitation for stakeholder views by 17/04/2026

Market studies First published:

20/03/2026

Last updated: 20/03/2026
We published a Terms of Reference on 20 March 2026, setting out our rationale and plans for this study.

We are launching this market study to examine whether change is needed to enable the lifetime and retirement interest only (RIO) mortgage sector to meet consumers’ changing needs, driven by effective competition in the market.

Read our Terms of Reference (PDF)

Our Terms of Reference explains our rationale for this market study, its scope, the issues we’ll explore, the potential outcomes our work might lead to, and next steps.

This study is relevant for a range of parties, including:

Current and potential providers of lifetime and RIO mortgages.
Firms who provide funding to providers.
Intermediaries who are, or could be, involved in the distribution of these products.
Consumers who could benefit from using these products in future.
Existing lifetime and RIO mortgage customers.
Relevant industry and consumer bodies.

Give us your views

We are not formally consulting on our Terms of Reference, but we welcome any views on the scope of the market study and the issues we’ll explore. Please share your views in writing to [email protected] by 17 April 2026.

Next steps

We are launching this work now, so that we can provide certainty to industry on our findings as soon as possible. We aim to publish an update by the end of 2026. We will now engage with firms, industry groups and stakeholders to gather their views on these Terms of Reference. We have already started discussions on how the market works now and on what data we may need. We aim to send firms Requests for Information in the coming weeks.

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