LONDON: Government announced further measures to control the spread of coronavirus (covid-19).
“As we adapted the support available to mortgage borrowers, we said we will keep it under review. As a result, on Monday 2 November, we will propose updates to our guidance to support mortgage borrowers,” an official statement noted.
It is important that mortgage borrowers who can afford to do so continue to make repayments. Borrowers should only take up this support if they need it.
To support those financially affected by coronavirus, Financial Conduct Authority (FCA) proposed that mortgage borrowers who have not yet had a payment deferral can request one. This could last for up to 6 months. Under our proposals borrowers who already have a payment deferral for a period of less than 6 months would be able to extend that deferral. This would mean customers would be able to have a payment deferral for a maximum of 6 months.
“We will work with trade bodies and lenders on how to implement this as quickly as possible, and will make a further announcement on 2 November”.
In the meantime, lenders should not be contacted just yet. Lenders will provide information soon on what this means for their customers and how to apply for this support.
Mortgage borrowers who have already benefitted from a 6 month payment deferral and are still experiencing payment difficulties should speak to their lender to agree tailored support.
It may also be in the interests of mortgage borrowers who expect to have long-term financial difficulties to agree other forms of tailored support with their lender.
“We are also considering the implications of this approach for consumer credit. Given the variety of different products in this sector, we are working quickly with industry to determine whether a similar approach should be adopted for consumer credit products”.