The Financial Conduct Authority (FCA) has published new guidance setting out options that firms can use to support their customers to manage their monthly mortgage payments amid the ongoing cost of living crisis, following a mortgage ‘summit’ held by Chancellor Jeremy Hunt at Downing Street on Wednesday attended by the city regulator, big name lenders and consumer champion, Martin Lewis.
The FCA said that mortgage lenders should support struggling customers in a range of ways that suit their needs and is seeking comments on the draft guidance by December 21 2022. The FCA's draft guidance sets out the flexibility that firms have to support customers who have missed monthly mortgage payments or are worried they may not be able to make payments in future.
It covers options including extending the term of the mortgage, switching to interest-only for a temporary period, moving to a different interest rate or making reduced monthly payments for a temporary period.
