The FCA has suggested extending the availability of payment deferrals for borrowers experiencing financial difficulty as a result of coronavirus.
The regulator’s proposals come after increasing lockdown restrictions announced by the government in the past week.
In September, the FCA announced it would be implementing tailored support for borrowers affected by COVID-19 after 31 October, stating that it would keep this under review as the pandemic evolved.
Under the FCA’s new proposals, those who have not yet had a payment deferral would be eligible for two payment deferrals of up to six months in total.
For those who currently have an initial payment deferral, they will be eligible for another payment deferral of up to three months, while those who have resumed repayments after an initial payment deferral would be eligible for another payment deferral of up to three months.
Borrowers would have until 31 January 2021 to request a payment deferral, and the regulator stated that a payment deferral under these proposals would not be reported as missed payments on a borrower’s credit file.
The FCA has also proposed that no one will have their home repossessed without their agreement until after 31 January 2021.
“We are working with lenders to ensure enhanced support remains available to borrowers struggling financially following changes in the coronavirus situation across the UK,” said FCA interim executive director of strategy and competition, Sheldon Mills.
“Tailored support will still be offered and remains the most appropriate option for many borrowers, but we are proposing to extend payment deferrals for additional support. We also want to make sure no one has their home repossessed during this time.
“It is in borrowers’ own long-term interest only to take a payment deferral when absolutely necessary. Those that are able to keep paying, should do so. This allows support to be targeted to those most in need.
“We are also asking borrowers not to contact their lender yet, and instead wait for further updates, including from their lenders, soon.”
The FCA said it is asking for comment on its proposals by 10am on Thursday 5 November.
Latest News
-
House price growth rises to 2.4% in October – Nationwide
-
Mortgage affordability failing to reflect modern careers
-
Net mortgage approvals rebound in September – BoE
-
Adviser study reveals clients cutting pension payments for IHT purposes
-
£31.6bn sitting in low-rate savings accounts
-
One in five potential homebuyers unaware of available support
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories