SMP: Proposed financial relief by FCA will assist recovery of mortgage market

The proposed financial relief by Financial Conduct Authority (FCA) for those customers impacted financially by the coronavirus outbreak will assist the recovery of the mortgage market according to The Society of Mortgage Professionals.

David Thomas, chair of the Society of Mortgage Professionals, says the particular feature of ensuring customers do not have their credit ratings negatively impacted by using the temporary reliefs will be a "key component" in ensuring a swift recovery for the mortgage market.

Thomas added: “There will be a large number of people whose finances will be seriously affected by coronavirus, but who will be able to rebuild their financial position quickly once the initial crisis is over.

"It is important that these people are not prevented from restoring their finances by being forced into short term debt, or by having their credit status reduced.

“The temporary measures announced by the FCA today will place individuals and firms in a stronger position when things begin to return to normality."

The package proposed by the FCA is intended to complement measures already implemented by the government to support mortgage holders and renters.

The assistance is also being provided for furloughed employees and the self-employed.

The FCA is conducting a brief consultation on their measures however is asking all stakeholders to respond by Monday 6 April.

Thomas said: “Of course, the devil is in the detail and it is important that despite what is undoubtably a fast moving and unprecedented situation, the longer-term impact of any such measures are considered carefully.

“It is also crucial that the sector takes a unified approach to this guidance: all lenders should adhere to this to ensure the best possible outcome.”