The Financial Conduct Authority (FCA) has announced proposals to continue support for customers who are struggling to pay their mortgage due to coronavirus.
The plans outline the options firms will be required to provide customers coming to an end of a payment holiday, as well as those who are yet to request one.
It means that for customers yet to request a payment holiday, the time to apply for one would be extended until 31 October 2020. For those who are still experiencing temporary payment difficulties due to coronavirus, firms should continue to offer support, which could include extending a payment holiday 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.”
The potential extension comes as the FCA has shown elevated levels of flexibility throughout this current crisis, as the body seeks to ensure economic stability is restored following the crisis.
The FCA has outlined it welcomes comments on these proposals until 5pm on Tuesday 26 May and expects to finalise the guidance shortly afterwards.