Guidance to mortgage lenders
On 22 May the Financial Conduct Authority (‘FCA’) issued further proposed guidance to mortgage lenders in relation to customers experiencing difficulties in making their regular monthly mortgage payments.
The advice provides that lenders should agree to the deferral of mortgage repayments for three months, and once customers are able to return to making mortgage repayments in the usual manner, the lender should agree a plan on how the missed payments will be repaid.
Lenders should also continue to support customers who have already had payment holidays, where they need further help. Lenders should not commence or continue repossession proceedings against customers before 31 October 2020, which is when the latest guidance will expire.
The consultation period for this latest proposed guidance expired on 26 May and the FCA is expected to issue the final guidance shortly thereafter.
Luke Cain is a solicitor in the Property department at Barker Gotelee Solicitors in Suffolk.