FCA cracks down on second charge mortgages

Second charge mortgages, which enable homeowners to borrow additional funds based on their home equity, pose potential risks, particularly for those already in significant debt. The Financial Conduct Authority (FCA) warns in a report that many consumers may be financially vulnerable and may face harm if lenders do not adequately assess affordability or offer appropriate advice. Concerns include inadequate consideration of essential living expenses, unclear fees, and ineffective record-keeping. While the FCA has identified examples of good practices, it emphasises the need for improvements in standards across the market. Consumers are encouraged to evaluate their options carefully, seek affordable borrowing solutions, and consult with financial advisors to ensure the suitability of debt consolidation options. 

Financial Times (13/03/2026)   The Independent (13/03/2026)   The Standard (13/03/2026)