FCA confirms repossessions ban extended to 31st October

The FCA has today (2nd June) confirmed that the current ban on lender repossessions of homes will be continued until 31st October 2020.

The announcement was made to ensure people are able to comply with the government’s policy to self-isolate if they need to.

The regulator also confirmed that customers who have not yet had a payment holiday and experience financial difficulty have until 31st October 2020 to request one.

Firms will need to communicate with customers with regard to what happens when their payment holiday ends, and should offer a range of options for how the missed payments will be repaid, if they are able to resume them.

The watchdog stated that lenders would continue to support customers who have already had a payment holiday, where they need further help. 

Firms are urged to contact their customers to find out what they can repay and, for those who remain in temporary financial difficulty, offer further support, which will include the option of a further three-month full- or part-payment holiday.

'The measures we have confirmed today will mean anyone who needs to can get help from their lender if they are still struggling to pay their mortgage due to coronavirus,” said Christopher Woolard, interim chief executive at the FCA.

“It is important that if a consumer can afford to restart mortgage payments, it is in their best interests to do so. 

“Customers should talk to their firm about the best option available for them.”

This guidance comes into force on 4th June 2020 and only applies to mortgages. 

It does not apply to consumer credit products, which are covered by separate guidance — set to be updated in due course. 

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