Freelancers and gig economy workers could enjoy more flexibility over how and when they pay their mortgage under plans designed to help more people get on the property ladder.

A shake-up of the rules so people whose income is “variable or irregular” could be freed up from having to make monthly mortgage payments is one of a number of changes being considered by the Financial Conduct Authority (FCA) that could make it easier for millions of “underserved” UK consumers to get a home loan.

The regulator has been looking at areas where it can loosen its rules and encourage banks to take more risks to reflect changes in how people live and work.

Some changes have already taken effect: in recent months, many banks and building societies have announced that some customers can access bigger mortgages. This followed an intervention by the FCA on the “stress tests” that some lenders were doing to check that people’s repayments would remain affordable even if mortgage rates went up.

In its new mortgage review, the regulator said there was wide agreement that some potential first-time buyer groups “could be better served”. This included people who cannot afford a big deposit, are self‑employed, are recovering from a “negative life event”, or had a negative mark on their credit file.

One idea under discussion involves offering greater payment flexibility to self-employed people, contractors, freelancers and others, which could include “alternative payment schedules to help those with irregular income flows”. This could mean that individuals would be allowed to vary the amount they pay each month, or it might be that instead of – for example – having to pay £1,000 to their bank every month, they could pay £2,000 every two months.

Some of the FCA’s rules refer to “monthly payments”, which may act as a barrier to product innovation, so the regulator said it would review the wording and look at whether it needed to be updated.

The watchdog is also examining the idea of giving more recognition to a decent record of paying rent when someone applies for a mortgage and is undergoing affordability checks.

The FCA said: “Some consumers have previously reported frustration where the regular payment a lender considers affordable is less than the rent they currently pay, leading to a smaller overall mortgage offer than expected.”

Another group who may benefit from the shake-up are those who previously had a negative mark on their credit file, perhaps because of debts they had previously run up, but are now in a better place financially. The regulator said some mortgage lenders may be applying its definition of a “credit‑impaired customer” more broadly than was originally intended, which may be causing some to pull back from lending to people whose adverse credit situation had been resolved.

The FCA is also exploring the idea of making interest-only mortgages easier to get hold of. These mortgages were hugely popular but almost became extinct after the 2007-08 financial crisis, with some viewing them as an example of irresponsible lending. However, the FCA has said they could be suitable for some consumers who may struggle to afford a traditional repayment mortgage.

It added that, looking ahead, more people would be taking out a mortgage that runs beyond state pension age, so it would be exploring what could be done to boost the “later life lending” market, which includes equity release mortgages that older people can take out against their homes.

Emad Aladhal, the FCA’s retail banking director, said people’s financial lives and needs were changing, and that today’s home ownership affordability challenges “may be creating problems for the future”.

He added: “In a world where pension income is less reliable, housing wealth will be more important to financial wellbeing,” which was why the regulator was keen to widen access to affordable borrowing and help more people own their own home.

Separately on Monday, Nationwide building society said house prices in the UK could rise by as much as 4% next year but getting on the property ladder may become slightly less difficult.