FCA delays repossessions and enhances mortgage support in new Covid package

Essex Home Finance
The FCA has set out new proposals to support mortgage borrowers affected by Covid-19 as a result of increasing restrictions announced in recent weeks.
The latest Finance and Property News2

The FCA has set out new proposals to support mortgage borrowers affected by Covid-19 as a result of increasing restrictions announced in recent weeks.

The FCA is proposing to extend the availability of payment deferrals to support borrowers who are experiencing payment difficulties because of coronavirus.

Under the new rules, those who have not yet had a payment deferral will be eligible for two payment deferrals of up to six months in total.

Those who currently have an initial payment deferral, or who have resumed repayments after an initial payment deferral, will be eligible for another payment deferral of up to three months.

Under the FCA’s proposals, borrowers would have until 31st January 2021 to request a payment deferral.

The FCA says it is working closely with trade bodies and lenders to make sure the enhanced measures “come into effect as soon as possible”. It is urging consumers not to contact their lender until the enhanced measures are in place.

The regulator has confirmed that a payment deferral under these proposals would not be reported as missed payments on a borrower’s credit file. However it noted “this does not mean that consumers’ ability to access credit will be unaffected in future, as lenders may take into account a range of information when making lending decisions”.

The FCA is also proposing that no one will have their home repossessed without their agreement until after 31st January 2021.

The FCA is asking for comment on the proposals by 10am on Thursday 5th November, with the final guidance published as soon as possible after the comment period closes.

Sheldon Mills, interim executive director of strategy and competition at the FCA, said: “We are working with lenders to ensure enhanced support remains available to borrowers struggling financially following changes in the coronavirus situation across the UK.

“Tailored support will still be offered and remains the most appropriate option for many borrowers, but we are proposing to extend payment deferrals for additional support. We also want to make sure no one has their home repossessed during this time.

“It is in borrowers’ own long-term interest only to take a payment deferral when absolutely necessary. Those that are able to keep paying, should do so. This allows support to be targeted to those most in need.

“We are also asking borrowers not to contact their lender yet, and instead wait for further updates, including from their lenders, soon.”

Original Article from Financial Reporter 03/11/2020

Get In touch

Leave this field blank
Mobile / Home Number
Please choose the closest match to your Mortgage Needs
  • Choose
  • First Time Buyer
  • Help To Buy
  • Homemover
  • Remortgage
  • Buy to Let
  • Equity Release
  • Insurance
  • Home Utilities
  • Nothing found
Essex Home Finance

(01245) 398466

Call Anytime

Address : 8 Kingsdale Business Centre, Regina Road, Chelsmford, Essex, CM1 1PE

Essex Home Finance Ltd is an Appointed Representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only.

Registered address: 1 High Street, Chelmsford, Essex, CM1 1BE.

Registered in England & Wales under number 10607263.

Your home may be repossessed if you do not keep up repayments on your mortgage.

We do not charge for Residential First Time Buyers, Residential Home Movers, Residential Remortgage, and all Product Transfers (Residential or Buy to Let).

There will be a fee for all Buy to Let Purchase and Buy to Let Remortgage cases. Typically our fee will be £149, payable on Offer. We will agree any fees with you before we proceed with your case.

There will be a fee for all Equity Release Mortgage cases. Typically our fee will be £695, payable on Offer. We will agree any fees with you before we proceed with your case.

We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent Ombudsman. 

Our advice is covered under the Financial Ombudsman Service.  You may be able to submit a claim through the  EU Online Dispute Resolution Platform If you live outside the United Kingdom or if you prefer not to deal directly with the Financial Ombudsman Service.