Mortgage holiday extension confirmed

Today the FCA confirmed the support firms should give mortgage customers who are either coming to the end of a payment holiday or who are yet to request one.

For customers still experiencing temporary payment difficulties due to coronavirus (Covid-19), firms will offer support, with options including a full or part payment holiday for a further three months. Customers yet to apply for a payment holiday have until 31 October 2020 to do so.

Christopher Woolard, Interim Chief Executive at the FCA, said: 'The measures we have confirmed today will mean anyone who needs to can get help from their lender, if they are still struggling to pay their mortgage due to coronavirus.

'It is important that if a consumer can afford to re-start mortgage payments, it is in their best interests to do so. Customers should talk to their firm about the best option available for them.'

The current ban on lender repossessions of homes will be continued to 31 October 2020. This will ensure people are able to comply with the government’s policy to self-isolate if they need to.

Payment holidays offered under this guidance will not have a negative impact on credit files. However, consumers should remember that lenders may use information obtained from other sources, such as bank account information, in their lending decisions.

The guidance comes into force on 4 June 2020 and only applies to mortgages.