Watchdog calls for 'mortgage holiday' extension
Borrowers who are taking a three-month mortgage payment holiday during the coronavirus crisis could extend it, under proposals from the City regulator.
The Financial Conduct Authority (FCA) says the holidays could extend for another three months, or people could start making reduced payments.
Three-month mortgage payment holidays are already available for people struggling due to the financial impact of coronavirus but the FCA has proposed that, for customers who have not yet asked for one, the time to apply for one would be extended until October 31.
The current ban on homes being repossessed would also be continued until October 31.
For those who are still experiencing temporary payment difficulties, banks and building societies should continue to offer support - which could include extending a payment holiday by a further three months or starting to make reduced payments.
Christopher Woolard, interim chief executive at the
FCA, said: "Our expectations are clear. Anyone who continues to need help should get it from their lender.
"Where consumers can afford to restart 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 October 31."
More than 1.8 million mortgage payment holidays have been taken up, and the first of these are due to come to an end in June.
The FCA invited feedback from lenders and expects to finalise the guidance, which applies only to mortgages, shortly.