Open Finance Could Transform Affordability

The FCA is exploring how open finance could reshape the mortgage journey. A policy sprint involving mortgage and open-finance specialists considered whether verified rental-payment histories and other financial data could help consumers evidence affordability more effectively. This could be particularly significant for renters and first-time buyers with strong payment records but limited conventional credit evidence.

AI may help advisers and lenders turn consented transaction data into clearer affordability insights, flag inconsistencies and reduce repetitive evidence gathering. Yet data quality, customer consent, explainability and fair treatment remain central. Firms should avoid treating predictive scores as a substitute for understanding the client, especially where vulnerability, irregular income or changing household circumstances affect affordability.

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Consumer Duty: Govern AI Evidence

The FCA’s latest fair-value commentary stresses that firms need evidence showing the relationship between price, benefits and actual customer outcomes. It expects firms to assess

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Rates Steady, Market Signals Mixed

Moneyfacts reported average two-year and five-year fixed rates broadly unchanged at 5.97% and 6.00% respectively. Yet market conditions remain unsettled: inflation was reported at 3.5%,

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