On Apr. 10, UK FCA updated guidance regarding rising living costs.
FCA issued Finalized Guidance (FG) 24/2, Guidance for firms supporting their existing mortgage borrowers impacted by the rising cost of living to reflect rule changes.
On same day FCA issued final rules to strengthen borrower protections, see #173875.
And regulator confirmed an improving picture for personal finances, see #207984.
This content, which was previously contained in #207984, has been moved for clarity.
Background
In Mar. 2023 FCA issued FG23/2 for mortgage lenders, after Dec. 2022 consultation.
Guidance aimed to set out the flexibility firms have when providing forbearance to those who need it, ensure firms clear about effect of FCA rules, guidance, principles.
Updated Guidance
Since publication of FG23/2 FCA has made relevant Handbook changes intended to make permanent requirements to support borrowers put in place during the pandemic.
In May 2023 consulted on incorporating relevant aspects of the Tailored Support Guidance (TSG) for lenders created during Covid pandemic into the FCA Handbook.
FCA has published policy statement containing changes to FCA rules to achieve aim.
These changes mean consequential amendments are needed to the guidance to explain how firms can support existing borrowers, comply with rules and guidance.
FG24/2 therefore takes account of the rule changes and updates previous FG23/2.
Effectiveness
FG24/2 is effective from Nov. 4, 2024, date on which the rule changes are in force.
