FCA to propose mortgage and consumer credit support update

FCA reacted to the announcement of the further measures to contain Covid-19 by saying it will review its measures to support mortgage borrowers impacted by the pandemic.

Although FCA stresses borrowers should always try to make payments if they can, it will now propose that any borrower who has not yet had a payment deferral will be able to request one, and that this could last for up to 6 months.  In the meantime, FCA confirmed it would not consider a firm to be acting inconsistently with Principle 6, if it chooses to apply the June guidance, intended to expire on October 31, beyond that date.

FCA will also review its consumer credit borrower measures, again with a view to extending the option to take a new payment deferral.

Emma Radmore