The Financial Conduct Authority (FCA) have today (17 November 2020) confirmed further support for those mortgage borrowers affected by the ongoing Coronavirus pandemic.
Commenting on the announcement, Head of Policy here at StepChange, Peter Tutton, said:
“The extension of payment deferrals for mortgage borrowers will come as a welcome relief to those who have yet to take full advantage of the scheme and are in difficulty due to ongoing coronavirus restrictions.
"We strongly echo the FCA’s recommendation that consumers should keep up with payments on their mortgage if they can afford to do so and should only seek support where such support is absolutely necessary.
“Our main concerns are for those whose payment deferrals have come to an end and are unable to resume repayments, as their only option will be whatever their lender offers. Some people may feel under pressure to resume payments due to concerns about negative credit reporting and use credit to do so, which could lead to more serious problems later down the line.
"Aside from more consistent forbearance from different lenders, there is a need for Government to consider how the underlying mortgage safety net can be strengthened, given the long tail of payment problems likely to arise from unemployment.”