15th September 2020

UK Finance responds to FCA guidance on ongoing support for mortgage customers

UK Finance has reiterated the banking and finance industry’s commitment to support mortgage borrowers who continue to face payment difficulties due to coronavirus, following the Financial Conduct Authority's(FCA) updated additional guidance published yesterday.

The FCA has confirmed that consumers are able to take a first or second three-month payment deferral on their mortgage until 31 October 2020. The regulator has also outlined further tailored support lenders can offer customers after this date, both for those who continue to face financial difficulties and those whose situation may be newly affected by coronavirus after the current guidance ends.

UK Finance’s latest figures show that lenders have granted more than two million mortgage payment deferrals since the scheme came into effect in late March. The number of mortgage payment deferrals in place peaked in the week ending 5th June at over 1.8 million and fell to 731,000 in the week ending 14th August. Industry data suggests that of those whose mortgage payment deferral has come to an end, over 70% have resumed making full payments.

Eric Leenders, Managing Director of Personal Finance at UK Finance, comments “The banking and finance industry is committed to providing ongoing support to those facing financial difficulty as part of our clear plan to get the country through this crisis.

Lenders understand that many households will continue to see their finances squeezed as the pandemic continues and will be offering a range of support for those who need it. It is essential that customers speak with their lender to discuss the best solution for them.

“Firms will be communicating with customers whose mortgage payment deferral is coming to an end to discuss the options available. Those who can afford to resume payments should do so, as it will always be in their best interests in the long run.”

UK Finance Trends(365 articles)