FCA Blue Sky Thinking on Pensions & Mortgage Deposits
Written on 31 March 2025 by
In a speech at JP Morgan’s Pension and Savings Symposium on Friday 28th March Nikhil Rathi, FCA CEO, asked if we should think more radically.
He said: “Buying a first home. Paying down a mortgage. Building a pension. Drawing on housing wealth later in life. These are not isolated events – they are junctions on the same financial journey.”
He added: “Going further – one of the biggest challenges prospective homeowners face is raising a deposit. Australia, New Zealand, the United States, Singapore and South Africa all permit citizens to leverage their pension savings to buy a first home.
“Some have suggested we consider, carefully, similar approaches in some circumstances here in the UK. ….. As we think more radically about the mortgage market and options to support homeownership, what might this mean for saving, including for pensions, more broadly?”
He concluded by saying: “If we continue to treat pensions, mortgages and savings as separate tracks, we will miss opportunities to help consumers get where they need to be.”
A blog I posted 6 months ago titled 'How Auto Enrolment Could Help FTBs' outlined some ideas on how allowing FTBs to use part of their pension fund as a deposit for their first home could not only enable them to become homeowners sooner but also encourage more savings into their pension fund.
As the FCA use of speeches as a way of promoting proposed new policies is a well established model I look forward to an early consultation on these proposals.
Category:Ray Boulger
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