FCA confirms support on mortgage deferrals

The Financial Conduct Authority (FCA) has confirmed support for mortgage borrowers who continue to face payment difficulties amid the COVID-19 pandemic.

Earlier this week (14 September 2020), the FCA published additional guidance for firms to ensure support for customers who have taken payment deferrals and still face financial difficulties, as well as customers who may be newly affected by coronavirus after the current guidance ends.

Under the finance regulator's current guidance, borrowers are able to take a first or second payment deferral which will not have a negative impact on their credit ratings.

However, under its new guidance which has come into effect from today (16 September), any further support from lenders will impact on credit files.

Christopher Woolard, interim chief executive at the FCA, said:

"Some consumers will continue to be impacted by coronavirus in the coming months, or be impacted for the first time. Consumers in these situations will benefit from firms providing them with tailored support.

"However, it is very important that consumers who can afford to resume mortgage payments should do so for their own long-term interests and so that help can be targeted at those most in need."

Firms will also signpost borrowers to support for managing their finances, including self-help and money guidance, or refer borrowers to organisations that can provide free debt advice if this meets their needs and circumstances.

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