Getting a mortgage in 2026 feels a lot different than it did even a year ago. If you’ve been following the news, you’ll know the Financial Conduct Authority (FCA) recently dropped some major updates (CP26/18) that are set to shake things up for the better.
In the past, many borrowers in Oldham and across the UK felt like they were "locked out" of the market because of rigid rules. Whether you’re self-employed, an older homeowner, or someone who had a bit of a credit blip three years ago, the goalposts are shifting.
At Hunter Capital, we’ve seen people make the same seven mistakes over and over, often because they didn't realize the rules had changed to help them. Here is how the new FCA landscape is helping you avoid those classic traps.
1. The "Monthly Income" Trap for the Self-Employed
One of the biggest mistakes freelancers and small business owners make is assuming they can't get a mortgage because their income isn't "steady" every single month. Traditionally, lenders looked for a flat monthly salary. If you had a bumper June but a quiet November, the computer often said "no."
How the new rules help: The FCA’s June 2026 proposals encourage lenders to be much more flexible with variable and irregular income. Instead of forcing you into a monthly box, lenders are now empowered to look at quarterly payment schedules or seasonal patterns. If you’re a self-employed professional, the focus is now on your actual ability to pay over the year, rather than a robotic month-by-month check.
2. Waiting Six Years for a "Credit Ghost" to Vanish
Many people believe that if they had a County Court Judgment (CCJ) or a period of arrears, they have to wait exactly six years for it to fall off their record before even talking to a mortgage broker. This "waiting game" often means missing out on the right property at the right price.
How the new rules help: The FCA is pushing for a "holistic" view of credit-impaired borrowers. The new guidance clarifies that having a past issue (like a CCJ over £500 or an IVA) shouldn’t be an automatic "indicator of unaffordability." Lenders are being nudged to look at your current recovery and financial stability rather than just historical labels. If you’ve been back on track for a couple of years, you might be more "mortgageable" than you think.
3. Assuming Interest-Only is a "No-Go"
For a long time, interest-only mortgages were treated with extreme caution. The mistake many borrowers make is thinking they need a massive ISA or a secondary property already in the bag to even qualify.
How the new rules help: If the interest-only part of your mortgage is under 25% of the property’s value, the FCA is proposing to remove the requirement for you to show a "credible repayment strategy" (like a specific investment plan). This makes residential mortgages with a "part-and-part" structure (where you pay some interest-only and some repayment) much more accessible. It’s a great way to keep monthly costs down while you’re building your career or business.
4. The Joint RIO Affordability Hurdle
For older borrowers in Oldham looking at Retirement Interest-Only (RIO) mortgages, a common mistake was assuming they’d be rejected because one partner couldn't afford the full payment alone if the other passed away. Lenders used to be very strict about this "survivor affordability."
How the new rules help: The FCA has noted that arrears on RIO mortgages are incredibly low (less than 1%). They are removing the guidance that forced lenders to check if one person could carry the whole loan alone. Now, joint RIO applications can be assessed more like standard joint mortgages. This is a game-changer for couples who want to stay in their family home while freeing up some cash.
5. Overlooking the "Gig Economy" Flexibility
Whether you’re a consultant, a contractor, or working multiple "gigs," the mistake is often thinking your income is too "complex" for a high-street lender. Many people don't even try to apply, thinking they'll be funneled into high-interest specialist rates.
How the new rules help: The 2026 updates explicitly target business owners and those with irregular income. The FCA wants to reduce the barriers that stop lenders from offering flexible repayment structures. This means your "complex" income is becoming the "new normal," and lenders are updating their tech to keep up with you.
6. The "All Lenders are the Same" Mistake
When people get a "no" from their local bank branch, they often give up. The mistake is thinking that every lender follows the exact same rulebook.
How the new rules help: While the FCA sets the framework, the new "Consumer Duty" means lenders have to prove they are acting in your best interest to avoid "foreseeable harm." This has led to a massive increase in product innovation. As a mortgage broker, we have access to over 100 lenders who are all interpreting these new flexible FCA rules in different ways. If one lender says no because of their specific "risk appetite," another might say yes because they specialize in your exact situation.
7. Going It Alone (The DIY Mistake)
In a world where rules are changing this fast, trying to navigate the mortgage market yourself is a risk. People often make the mistake of applying for the first deal they see on a comparison site, not realizing that the "fine print" regarding the new FCA flexibilities might not be visible.
How the new rules help: The complexity of these new rules actually makes the role of a professional advisor more important than ever. We don't just look at the interest rate; we look at how a lender treats your specific income type, your credit history, and your long-term goals.
The Verdict: Why Expert Support Matters
The June 2026 FCA updates are a breath of fresh air for the UK mortgage market. They acknowledge that life isn't always a 9-to-5 office job and that people deserve a second chance after financial hiccups.
However, "more flexibility" for lenders also means "more choices" for you, and that can be overwhelming. That’s where we come in. At Hunter Capital, we specialize in making the complex simple. Whether you need a commercial mortgage, a buy-to-let option, or help with a foreign national mortgage, we know which lenders are leading the way with these new rules.
Don't let a "common mistake" hold you back from your property goals in Oldham or anywhere else in the UK.
Frequently Asked Questions (FAQ)
1. Do the new FCA rules mean it's easier to get a mortgage with bad credit?
Yes, in many cases. The FCA is encouraging lenders to look at your current financial recovery rather than automatically declining you based on a "credit-impaired" label from the past.
2. Can I get an interest-only mortgage without a repayment plan now?
If the interest-only portion is less than 25% of the property value, the new rules mean lenders don't necessarily need to see a "credible repayment strategy" like an endowment or ISA. However, you still need to prove you can afford the monthly interest.
3. I’m self-employed and my income is seasonal. Will this help me?
Absolutely. Lenders are being given more room to assess income patterns and even set up non-monthly payment schedules (like quarterly payments) to match how you actually earn your money.
4. What is a RIO mortgage, and how have the rules changed for couples?
A Retirement Interest-Only (RIO) mortgage allows older borrowers to pay only the interest until they die or move into care. The new rules make it easier for couples to apply together, as lenders no longer have to strictly prove the surviving partner can afford the loan alone.
Ready to see what you could borrow?
The mortgage market is more flexible than it's been in years. Let us help you navigate it.
Book a free mortgage consultation with Hunter Capital today.
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