FCA Guidance on Support for Mortgage and Consumer Credit Customers

This week, the Financial Conduct Authority (FCA) has provided updated guidance relating to support that should be available for both mortgage and consumer credit customers experiencing payment difficulties as a result of coronavirus.

Mortgage and consumer credit customers will have until 31 March 2021 to apply for an initial or a further payment deferral. After that date, they will be able to extend existing deferrals to 31 July 2021, provided these extensions cover consecutive payments, and are subject to the maximum 6 months allowed.

Consumers who have not yet taken a deferral, and who think they will need the full 6 months are advised to apply in advance of their February 2021 payment being due in order to cover a full six months of payments.

The guidance also confirms that customers will be able to request tailored support where a further payment deferral is not appropriate. This could include reducing or waiving interest.

Payment deferrals under both sets of guidance will not be reported as missed payments on a customer’s credit file; however tailored support may be. Lenders should inform customers where this will be applicable. Any payment deferrals offered as tailored support could be recorded on a customer’s credit file.

The mortgage guidance will come into force from 20 November, and credit guidance will apply from 25 November. See the FCA's website for further information.

As always, we urge you to act now and seek advice to deal with any debt or money issues you are experiencing. Our team are on hand to provide advice and assistance. If you would like more advice on dealing with your debt or bills please contact the Money Advice team on 03451 400 094, Monday to Friday, 8.30 am to 4 pm.