Tailored Plans Needed To Help With Mortgage Holidays
The Financial Conduct Authority (FCA) have called on banks to continue supporting home owners with mortgage holidays until 31 October 2020, then come up with a tailored plan to get them back on track
Home owners have been able to defer mortgage payments due to the financial impact of the coronavirus pandemic. The scheme was initially meant to end in June, but was extended due to ongoing financial pressures felt by home owners.
Christopher Woolard, Interim Chief Executive of the FCA, said:
“We are proposing that firms contact their borrowers in good time before the end of a payment holiday, and work with them to come up with a tailored plan to help get them back on track.”
More than 1.9 million borrowers have taken advantage of the scheme to delay payments since it was launched in March.
The regulator will publish guidance later this month to outline some steps that institutions can take,