The Financial Conduct Authority (FCA) has set out ways that mortgage firms can help customers worried about or already struggling with their mortgage payments as a result of the cost of living crisis.
The regulator expects firms to support their customers in a range of ways that meet their needs. It has published guidance setting out options firms can use to support their customers to manage their monthly mortgage payments, alongside new information for borrowers affected by rising prices.
Sheldon Mills, executive director of consumers and competition at the FCA, said: “Most borrowers are able to keep up with their mortgage payments and should continue to do so. But if you’re struggling to pay your mortgage, or are worried you might, you don’t need to struggle alone. Your lender has a range of tools available to help, so you should contact them as soon as possible.”
The FCA’s draft guidance sets out the flexibility firms have to support customers who have missed monthly mortgage payments or are worried they may not be able to make payments in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 such as extending the term of their mortgage, switching to interest-only for a temporary period, moving to a different interest rate or making reduced monthly payments for a temporary period.
Making changes, even temporary ones, may result in higher monthly payments in future or paying back more overall. Mortgage borrowers should consider carefully any steps they take and customers who can keep up with their payments should continue to do so.
The FCA has also attended a roundtable, hosted by the UK Government, alongside mortgage lenders to discuss what support some mortgage borrowers may need. The regulator says it is closely monitoring the mortgage market and will continue to act so consumers get the support they need.
