Guidance in fully in force from Nov. 20, 2020; consumers will have until Mar. 31, 2021, to apply for an initial or a further deferral; and can extend deferrals to Jul. 31, 2021.
FCA encourage firms to consider how they can best support their customers at this time, and to follow this guidance earlier than Nov. 20 where they are able to.
May help to limit the number of cases of customers dealt with since Oct. 31, whose outcomes will need to be reviewed under para 1.22 of payment deferral guidance.
For the period Nov. 17 to Nov. 20, 2020, a firm is free to act in line with this guidance without placing it in contravention of Principle 6, Principle 7, MCOB 2.5A, MCOB 13.
Nov. 17, 2020 UK FB Statement
On Nov. 17, 2020, UK FB issued statement responding to FCA final mortgage guidance.
Lenders committed to renewed support for mortgage customers facing difficulty.
As the Financial Conduct Authority confirms an extension to the mortgage payment deferral scheme until Jul. 31, 2021, with final applications due by Mar. 31, 2021.
2.6mn mortgage payment deferrals have so far been granted since start of pandemic.
Just under 140,000 were still in place at the end of October; of those mortgage customers whose payment deferral has come to an end, evolving industry analysis suggests that over 80 per cent have now returned to making repayments.
Customers will now have until Mar. 31, to apply for initial or further payment deferral.
After that, they will be able to extend existing deferrals to no later than Jul. 31, 2021.
Customers who are newly impacted by coronavirus and who want to benefit from the maximum 6 months available should apply before their February 2021 payment is due.
The final guidance allows payment deferrals that are not consecutive, including for customers in arrears or receiving tailored support; FCA has clarified that this updated guidance applies retrospectively from Nov. 1, coming fully in to force on Nov. 20, 2020.
If a customer came to the end of a payment deferral between Oct. 31, and when this latest amended guidance comes into force, and have not had 6 months of deferrals, they will be eligible to apply for a retrospective payment deferral to cover this period.