The Financial Conduct Authority (FCA) has set out ways that mortgage firms can help customers worried about or already struggling with their mortgage payments as a result of the cost-of-living squeeze.
The FCA said it expects firms to support their customers in a range of ways that meet their needs. It has published guidance setting out the options firms can use to help their customers to manage their monthly mortgage payments, alongside new information for borrowers affected by rising prices.
The FCA’s draft guidance sets out the flexibility firms must show in supporting customers who have missed monthly mortgage payments, or who are worried they may not be able to make payments in future. It covers options such as extending the term of their mortgage, switching to interest-only for a temporary period, moving to a different interest rate or making reduced monthly payments for a temporary period.
The regulator stressed that mortgage borrowers should carefully consider any steps they take and customers who can keep up with their payments should continue to do so.
The FCA says it is closely monitoring the mortgage market and will continue to act so consumers get the support they need.
