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FCA considers 12-month mortgage payment holiday – reports
The Financial Conduct Authority (FCA) is considering giving homeowners a 12-month break from mortgage payments by extending the payment holiday period, according to reports.
This will be done to help homeowners avoid defaulting on their mortgages and having their homes repossessed, The Times said.
In March, the regulator said it would review the mortgage holiday package in three months and would extend them if it was appropriate.
Recent figures from UK Finance revealed over 1.2 million people had taken a mortgage holiday since March, with 700,000 of those being granted in April.
According to guidance from the FCA, borrowers who have taken out a mortgage holiday should not have their credit score impaired and should not be treated differently from those who keeping making payments.
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Borrowers on payment holidays are also allowed to make product transfers during the payment break.
A spokesperson for the FCA said: “It is vital that, at the end of a payment freeze, customers have the advice and support they need, and are clear on the options available to them.
“We are currently working with firms, consumer and debt advice groups, and government, to consider what other forms of support may be needed when the payment freezes come to an end. But we have not yet made any final decisions. We will confirm our plans in the coming weeks.”