FCA: Borrowers have up to 31 October to apply for mortgage payment holiday

Ryan Fowler

June 2, 2020

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The Financial Conduct Authority (FCA) has said that customers yet to apply for a payment holiday have until 31 October 2020 to do so whilst confirming that the current ban on lender repossessions of homes will be extended until the same date. 

At the same time the regulator is reminding customers that if they can afford to resume payments, they should.

For customers still experiencing temporary payment difficulties due to coronavirus (COVID-19), firms will offer support, with options including a full or part payment holiday for a further three months.

Christopher Woolard, Interim Chief Executive at the FCA, said: ‘The measures we have confirmed today will mean anyone who needs to can get help from their lender, if they are still struggling to pay their mortgage due to coronavirus.

“It is important that if a consumer can afford to re-start mortgage payments, it is in their best interests to do so. Customers should talk to their firm about the best option available for them.”

The regulator also confirmed that payment holidays offered under this guidance will not have a negative impact on credit files.

However, consumers were warned that they should remember that lenders may use information obtained from other sources, such as bank account information, in their lending decisions.

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