Mortgage break debt warning

HOMEOWNERS who have deferred their mortgage payments are being warned against a debt binge after the go-ahead to extend mortgage holidays for a further three months has been approved.

The Financial Conduct Authority (FCA) warns that homeowners face paying thousands of pounds in extra interest if they put off making payments.

The FCA’s Christopher Woolard says that if customers can afford to restart payments ‘it is in their best interests to do so’, but support will be given to those who can’t.

Customers will also be allowed to make partial repayments.