Information  X 
Enter a valid email address
  Print          More announcements

Monday 02 November, 2020

Financial Conduct

FCA to announce mortgage & credit borrower support

RNS Number : 9009D
Financial Conduct Authority
02 November 2020
 

 

(As announced on Saturday 31 October 2020)

 

Financial Conduct Authority to announce further support for mortgage borrowers impacted by coronavirus

This evening the 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. 

 

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, we will propose 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. 
 

 

(As announced on Monday 2 November 2020)

 

Financial Conduct Authority to announce further proposals to support consumer credit borrowers impacted by coronavirus

We said we would keep our support for consumer credit borrowers under review as the coronavirus (Covid-19) pandemic evolved.

 

Following the announcement of the latest Government restrictions in response to the coronavirus outbreak, we will propose updates to our temporary guidance on personal loans, credit cards, motor finance, rent to own, buy-now pay-later, pawnbroking and high-cost short-term credit to support consumer credit customers financially affected by coronavirus.

 

It is important that consumer credit customers 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, we will propose that consumer credit customers who have not yet had a payment deferral under our July guidance can request one. This could last for up to 6 months unless it is obviously not in the customer's interests. Under our proposals borrowers who are currently benefitting from a first payment deferral under our July guidance would be able to apply for a second deferral.

 

For high-cost short-term credit (such as payday loans), consumers would be able to apply for a payment deferral of one month if they haven't already had one.

 

We will work with trade bodies and lenders on how to implement these proposals as quickly as possible, and will make another announcement shortly.

 

In the meantime, consumer credit customers should not contact their lender just yet. Lenders will provide information soon on what this means for their customers and how to apply for this support if our proposals are confirmed.

 

Consumer credit customers who have already benefitted from payment deferrals and are still experiencing payment difficulties should speak to their lender to agree tailored support.

 

It may also be in the interests of consumer credit customers who expect to have long-term financial difficulties to agree other forms of tailored support with their lender.

 

On Saturday 31 October, we announced that we would propose updates to our guidance to support mortgage borrowers; we will make a further announcement on this later today.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IRSFZMGMVZGGGZG

a d v e r t i s e m e n t