FCA sets out how mortgage firms should be supporting borrowers
What has happened?
In December 2022, the FCA set out ways that mortgage firms can help customers worried about or struggling with their mortgage payments as a result of the cost of living crisis.
What are the key points??
The FCA expects firms to support their customers in a range of ways that meet their needs. It has published guidance available here, setting out ways in which firms can support their customers to manage their monthly mortgage payments, alongside new information for borrowers affected by rising prices. This guidance is being consulted until 21st December.
The FCA’s draft guidance sets out the flexibility firms have to support, through various methods of forbearance, customers who have missed monthly mortgage payments or who are worried that they may not be able to make payments in the future. It covers options such as extending the term of their mortgage, switching to an interest-only loan for a temporary period, moving to a different interest rate, or making reduced monthly payments for a temporary period.
The FCA has also attended a roundtable, hosted by the UK Government, alongside mortgage lenders, to discuss what support some mortgage borrowers may need.
How can we help you?
If you’d like to know more about how we can help you with your mortgage borrower support arrangements, Consumer Duty planning or any other regulatory compliance issues, our specialist team is here to help.
Contact us today on 0207 436 0630 or email info@thistleinitiatives.co.uk.