FCA releases guidance for firms supporting mortgage borrowers with rising cost of living

The FCA has provided its finalised guidance (FG 23/2) for firms seeking to assist their existing customers facing higher mortgage payments and interest rates due to the rising cost of living. The guidance clarifies the effect of the FCA’s rules and options available to firms to support their customers and comply with the FCA’s existing Rules, Guidance and Principles.

It explains that firms have the ability to provide support through means such as:

• automated processes;
• digital channels;
• flexibility to provide forbearance to those who need it; and
• scope to vary contract terms for other borrowers who want to reduce their monthly payments.