Further support for mortgage borrowers
12/11/2020

The Financial Conduct Authority (FCA) has announced new proposals to ensure that lenders provide tailored support to mortgage borrowers who continue to face payment difficulties due to the COVID-19 crisis. This follows the additional government measures announced over recent weeks to control the spread of coronavirus.

Payment holidays to support mortgage borrowers who are experiencing payment difficulties because of coronavirus will be extended. These measures were due to come to an end on 31 October 2020.

This means that:

  • those who have not yet had a payment deferral will be eligible for 2 payment deferrals of up to 6 months in total
  • those who currently have an initial payment deferral, will be eligible for another payment deferral of up to 3 months 
  • those who have resumed repayments after an initial payment deferral will be eligible for another payment deferral of up to 3 months 

Under the FCA’s proposals, borrowers would have until 31 January 2021 to request a payment deferral. A payment deferral under these proposals would not be reported as missed payments on a borrower’s credit file.

The FCA is also proposing that no one will have their home repossessed without their agreement until after 31 January 2021.

Some borrowers would not be eligible for a payment deferral because they may already have had 2 payment deferrals (of up to 6 months in total), and tailored support will be more appropriate to their circumstances. Tailored support may be reported on a borrower’s credit file, and lenders should inform borrowers where this will be the case.


Latest News

HMRC’s Annual Tax Summary
03/12/2020 - More...
The Annual Tax Summary is a document provided by HMRC that provides details on

Pay January tax by instalments
03/12/2020 - More...
The deadline for submitting your 2019-20 Self-Assessment tax returns online is

Confirmation of Minimum Wage increases 2021
03/12/2020 - More...
The Chancellor used the recent Spending Review to confirm that increased

Search News


Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

»Signup for the newsletter