Portfolio

FCA confirms 3-month extension for mortgage payment pause

By Frank Prenesti

Date: Tuesday 02 Jun 2020

(Sharecast News) - British homeowners affected by the financial impact of the coronavirus pandemic have been given an extra three month pause on mortgage payments, the Financial Conduct Authority (FCA) confirmed on Tuesday.
The regulator said borrowers had until October 31 to apply for payment holidays, but stressed that those who could afford to restart repayments should do so. The guidance comes into force from 4 June.

The current ban on lender repossessions of homes was also extended, allowing people to comply with the government's policy to self-isolate if they need to, it added.

"Firms will communicate with customers regarding what happens when their payment holiday ends. They should offer a range of options for how the missed payments will be repaid, if they are able to resume payments.

Banks and building societies were instructed to contact customers coming to the end of repayment holidays to offer a range of options on how missed payments would be repaid, in the cases where they are able to resume payments.

Mortgage payment holidays were introduced as part of the government's financial package to help cop with the impact of the pandemic.

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