The FCA yesterday announced updated guidance for mortgage customer facing financial difficulties as a result of Covid-19. Under the extension, eligible customers will have until 31 March 2021 to apply for an initial or further payment referral and the FCA has clarified who is eligible to apply:
- Those who have not yet had a payment deferral will be eligible for payment deferrals of 6 months in total.
- Those who currently have a payment deferral will be eligible to top up to 6 months in total.
- Those who have previously had payment deferrals of less than 6 months will be able to top up, as long as total deferrals don’t exceed 6 months. This includes those receiving tailored support and those who are behind on payments.
- Borrowers who have already had 6 months of payment deferrals will not be eligible for a further payment deferral. Firms will provide tailored support appropriate to their circumstances. This may include the option to defer further payments.
The FCA has also confirmed that repossessions without agreement are on hold until after 31 January 2021.
The full guidance can be accessed via the following links:
Mortgages payment deferrals guidance