Financial Conduct Authority proposes extension of ban on home repossession

A financial regulatory body has today announced proposals to support customers struggling to pay mortgage due to coronavirus.

The Financial Conduct Authority (FCA), which is the conduct regulator for 58,000 firms in the UK, has proposed updated requirements for financial firms, including the extension of the payment holiday deadline until the end of October.

As well as this, the authority has suggested that the current ban on repossessions of homes should be continued to 31 October 2020, to “ensure people are able to comply with the government’s policy to self-isolate”.

The FCA also said that for customers continuing to struggle due to the pandemic, firms may be required to extend payment holidays by a further three months.

Christopher Woolard, interim chief executive at the FCA, commented: “Our expectations are clear - anyone who continues to need help should get help from their lender.

“We expect firms to work with customers on the best options available for them, paying particular attention to the needs of their vulnerable customers, and to provide information on where to access help and advice.

“Where consumers can afford to re-start mortgage payments, it is in their best interests to do so. But where they can’t, a range of further support will be available.

“People who are struggling and have not had a payment holiday, will continue to be able to apply until 31 October.”