The Financial Conduct Authority (FCA) recently announced that assistance is available for those struggling to make mortgage payments due to the coronavirus pandemic. This announcement comes as a relief to many homeowners who are facing financial hardship due to job losses, reduced hours, or other economic impacts of the pandemic.
The FCA has confirmed that lenders are obligated to provide assistance to those in need. This includes offering payment holidays of up to three months, reducing monthly payments, or extending the term of the loan. The FCA has also made it clear that lenders should not charge any fees for providing this assistance.
The FCA has also provided guidance to lenders on how to assess an individual’s eligibility for assistance. This includes considering an individual’s financial situation, the impact of the coronavirus crisis on their income, and their ability to make payments. Lenders should also consider any other factors that may affect an individual’s ability to make payments, such as health issues or caring responsibilities.
The FCA has also encouraged lenders to be flexible when assessing an individual’s eligibility for assistance. This includes taking into account any changes in circumstances since the start of the pandemic, such as job losses or reduced hours.
The FCA’s announcement is a welcome relief for many homeowners who are struggling to make mortgage payments due to the coronavirus pandemic. It is important for those in need to contact their lender as soon as possible to discuss their options for assistance. The FCA’s guidance should help ensure that lenders are taking a fair and reasonable approach when assessing an individual’s eligibility for assistance.