FCA confirms guidance update on mortgages

The Financial Conduct Authority (FCA) has confirmed an update to their guidance on mortgages. For mortgages, the FCA is extending the guidance that firms should not enforce repossessions except in exceptional circumstances before 1 April 2021. In November 2020, the FCA published guidance which meant firms should generally not enforce repossessions before 31 January 2021. On 13 January, it published updated draft guidance for comment. Following the period for comment, the FCA has now finalised its guidance which it outlined as following the overall approach of the draft guidance. Individuals have until 31 March 2021 to apply for a payment holiday.

Keith Richards, chief executive of the Personal Finance Society, said: “We support the FCA’s proposal to extend existing guidance on repossessions so that firms should not enforce repossessions before 1 April 2021.

“We know that, with the development of vaccines, there is a realistic path back to a much more stable economic environment over the coming year.

"However, this will take time, and it is realistic to give homeowners who are in financial difficulties more time to stabilise their finances before activity over repossessions resumes.”

Keith Richards, chief executive of the personal Finance Society, added: “We support the FCA’s proposal to extend existing guidance on repossessions so that firms should not enforce repossessions before 1 April 2021.”

“We know that, with the development of vaccines, there is a realistic path back to a much more stable economic environment over the coming year.

"However, this will take time, and it is realistic to give homeowners who are in financial difficulties more time to stabilise their finances before activity over repossessions resumes.”