At the start of the year, when a rate rise was still a possibility, the FCA begin a thematic review into the strategies lenders could harness to help borrowers maintain payments if mortgage costs increased.

It found mixed levels of readiness and inconsistent approaches to identifying vulnerable customers. While some firms had strategies mapped out to treat customers fairly if rates were to rise, few could actually implement them if this happened in the near future.

Messages to customers about the risks to customers’ financial comfort were too general instead of being personalised to individual customers.

In its feedback, the FCA gave examples of the best strategies it found when it investigated the practices of nine mortgage lenders.

Progressive mitigation strategies included removing barriers that could prevent existing customers transferring to other products in order to lessen the impact of an interest rate rise, for example, by removing loan-to-value limits for product transfers. It also championed the development of online mortgage calculators to help customers check the potential impact of an interest rate rise, showing customers where to seek support

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Standout communication strategies involved working collaboratively with debt advice agencies to develop ways to communicate with those customers most likely to be impacted by a rate rise

In its feedback, the FCA said: “Firms can take steps now to be better prepared and do not have to wait until an interest rate rise to develop strategies.”

The regulator added that forward planning could help firms to understand the potential impact on their resources if rates did rise, for example, the need for extra staff to deal with financially vulnerable customers, and considering the impact on customers currently in arrears.