FCA confirms extended payment holiday deadline for mortgage customers

The UK’s financial regulatory body has today confirmed the support that firms should give to mortgage customers.

The Financial Conduct Authority (FCA) has said that firms need to be aware of the difficulties consumers may be facing in the wake of the country’s lockdown.

It announced that for customers still experiencing payment difficulties due to coronavirus, firms should offer a full or part payment holiday for a further three months, and that customers yet to apply for a payment holiday have until 31 October 2020 to do so.

It also confirmed that the current ban on lender repossessions of homes will be continued to 31 October 2020 to ensure people are able to comply with the government’s policy to self-isolate if they need to.

Following the financial difficulties presented by the crisis, the board also said that payment holidays offered under this guidance will not have a negative impact on credit files.

Christopher Woolard, interim chief executive at the FCA, commented: “The measures we have confirmed today will mean anyone who needs to, can get help from their lender, if they are still struggling to pay their mortgage due to coronavirus.

“It is important that if a consumer can afford to re-start mortgage payments, it is in their best interests to do so.

“Customers should talk to their firm about the best option available for them.”

This guidance will come into force this Thursday (4 June 2020).

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