Mortgage payment holidays will end on October 31 but FCA calls for continued lender support
The Financial Conduct Authority (FCA) has confirmed that there will be no further extensions to its guidance on mortgage payment holiday;s which is due to come to an end on October 31.
The regulator has already extended the guidance by three months from its original end date at the end of June.
Moving forward the FCA has called on firms to provide tailored support to mortgage borrowers who continue to face payment difficulties due to coronavirus.
Its draft guidance for that support proposes that firms should consider the appropriateness, and use, of a range of different short and long-term support options to reflect the specific circumstances of their customers.
This could include extending the repayment term or restructuring of the mortgage. Where consumers need further short-term support, firms should offer arrangements for no or reduced payments for a specified period to give customers time to get back on track.
Christopher Woolard, interim chief executive at the FCA, said: “It is important that consumers who can afford to resume mortgage payments should do so.
“However, we understand that borrowers facing payment difficulties because of the pandemic will continue to face uncertainty and may also experience temporary interruptions in income.
“We are proposing that firms contact their borrowers in good time before the end of a payment holiday, and work with them to come up with a tailored plan to help get them back on track. Firms should not take a ‘one size fits all’ approach.”