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Support for mortgage customers

The FCA's proposals for continued support for mortgage clients came into force on 4th June 2020. The Regulator reiterates that clients who can afford to resume their mortgage payments should do so, but also states that:

  • Clients who have not yet had a payment holiday and are in financial difficulty have until 31 October 2020 to request one
  • The current ban on lender repossessions of homes will continue until 31 October 2020
  • Lenders must let clients know what happens when their payment holiday ends including a range of options for how missed payments can be repaid
  • Lenders must continue to support clients who have already had a payment holiday and need further help offering further support which includes the option of a further three-month full or part payment holiday
  • Payment holidays will not have a negative impact on credit files

Lenders also need to be aware that the crisis and the public health measures that have been taken are likely to worsen the personal circumstances that can cause client vulnerability. These include:

  • Poor physical and mental health
  • Low financial or emotional resilience
  • Life events such as bereavement
  • Limited capabilities such as poor digital and language skills

The FCA has also updated the following link https://www.fca.org.uk/consumers/mortgages-coronavirus-consumers