Late yesterday afternoon, on 2 November 2020, the UK Financial Conduct Authority published a press release setting out its further proposals to support mortgage borrowers impacted by COVID-19. There is a draft further updated guidance for firms and a draft updated additional guidance for firms.
The FCA proposes:
– 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 have had one payment deferral, will be eligible for another payment deferral of up to three months;
– those who have restarted repayments after an initial payment deferral will be eligible for another payment deferral of up to three months;
– to allow borrowers until 31 January 2021 to ask for a payment deferral;
– if borrowers can afford to make repayments then they should continue to do so;
– borrowers should hold off contacting their lender until the enhanced measures are in place; and
– to stop any repossessions (without the borrower’s consent) before 31 January 2021.
The FCA has invited comments by 10am on 5 November 2020.