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Further proposals announced to support mortgage borrowers

Mortgage payment holidays are being extended for homeowners financially affected by the COVID-19 pandemic.

The Financial Conduct Authority (FCA) is proposing to extend the availability of payment deferrals for borrowers who are experiencing financial difficulties due to the pandemic.

Under the new proposals, those who have not yet had a payment deferral will be eligible for two payment deferrals of up to six months in total.

Those who currently have an initial payment deferral will be eligible for another payment deferral of up to three months.

The FCA also revealed those who have resumed repayments after an initial payment deferral will be eligible for another payment deferral of up to three months.

Under the new rules, borrowers would have until 31 January 2021 to request a payment deferral from their mortgage provider.

The FCA is also proposing that no one will have their home repossessed without their agreement until after 31 January 2021.

Sheldon Mills, interim executive director of strategy and competition at the FCA said:

“Tailored support remains the most appropriate option for many borrowers, but we are proposing to extend payment deferrals for additional support.

“It is in borrowers’ own long-term interest only to take a payment deferral when absolutely necessary.

“Those that are able to keep paying, should do so. This allows support to be targeted to those most in need.”

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