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By Sean Farrell
Date: Wednesday 26 Aug 2020
LONDON (ShareCast) - (Sharecast News) - The Financial Conduct Authority has told lenders to provide extra support for mortgage customers in difficulty after payment holidays run out in October.
The FCA said deferring mortgage payments had helped millions of borrowers through the initial shock of the Covid-19 crisis but that many people would stay in financial difficulty.
These people include those who have already asked for help and borrowers whose finances are newly affected as the economic effects of the crisis persist, the FCA said.
The regulator said it expected lenders to contact customers in good time before the end of a payment holiday and work with them to devise a plan to keep them on track. This could include extending the payment holiday or restructuring the mortgage, the FCA said.
The FCA told lenders in March to offer payment holiday's to mortgage borrowers struggling during the Covid-19 crisis. It extended the initial three-month deadline by three months in June, giving borrowers until the end of October to apply.
Many economists expect a new wave of people in financial difficulty as unemployment rises when Chancellor Rishi Sunak withdraws most state support for jobs, also at the end of October. The FCA warned lenders not to take a "one size fits all" approach to struggling borrowers.
Christopher Woolard, acting FCA chief executive, said: "It is important that consumers who can afford to resume mortgage payments should do so. However, we understand that borrowers facing payment difficulties because of the pandemic will continue to face uncertainty and may also experience temporary interruptions in income."
Woolard told firms to help customers manage their finances and to refer them to debt advice services if appropriate. He gave banks and other interested parties until 1 September to comment on the new guidance.
|52 Week High||600.20p|
|52 Week Low||283.35p|
Compare performance with the sector and the market.
|3rd Interim||2nd Interim|
|Time||Volume / Share Price|
|16:37||42,000 @ 404.85p|
|16:35||41,080,908 @ 404.85p|
|16:29||750 @ 405.65p|
|16:29||750 @ 405.65p|
|16:29||500 @ 405.65p|