FCA confirms help for mortgage borrowers struggling with payments
What has happened?
In March 2023, the FCA confirmed its final mortgage guidance in FG 23/2, setting out the ways mortgage lenders can help customers facing difficulties with their payments because of the rising cost of living.
What are the key points of the guidance for lenders?
The FCA has also published new data and analysis on the mortgage market. which shows that, in addition to households already behind on payments, 356,000 mortgage borrowers could face payment difficulties by the end of June 2024.
The FCA, major lenders and consumer representatives attended a mortgage summit hosted by the Chancellor in December. Since then, the FCA has continued to work with lenders to make sure borrowers get the support they need, including timely communication from lenders.
Lenders proactively contacted customers a combined total of 16.5 million times, across a range of channels, to offer support in the last year. Following conversations with the FCA, lenders have confirmed they expect to increase this to 20.5 million contacts over the next year.
Lenders supported over two million customers to manage their finances in the past year, including through budgeting tools, access to debt advice, and tailored mortgage forbearance.
The FCA expects firms to support borrowers in financial difficulty by applying forbearance or contract variations. Its finalised guidance confirms how mortgage lenders can support customers who have missed payments or who may not be able to make payments in the future. It covers options such as extending the term of their mortgage or making reduced monthly payments for a temporary period.
The FCA has undertaken to continue to monitor the mortgage market and how firms are supporting their customers.
How can we help you?
Thistle Initiatives has supported wealth management firms and payment services firms with compliance for over 10 years as a trusted compliance and regulatory advisor. In addition to assisting you as and when, our team of specialists can serve as your right hand in a meeting and complying with regulations. We understand the importance of staying up-to-date and compliant and are dedicated to providing the guidance and support needed to do so.
Are you looking for help with your FCA mortgage lending arrangements, your implementation of the Consumer Duty, or more general regulatory questions? Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 0207 436 0630 or sending an email to info@thistleinitiatives.co.uk.