Since March this year the Financial Conduct Authority (FCA) has introduced a range of targeted temporary measures and guidance to help consumers negatively impacted and struggling with mortgage payments in light of COVID. 

The guidance issued for mortgages are:

• March 2020 which set out the initial requirements granting 3 month payment deferrals (PD) for mortgage borrowers; and
• 4 June and 16 June 2020 (June Guidance) which set out expectations for firms for supporting borrowers coming to the end of a PD including the option of obtaining a further 3 month PD.

The ability for borrowers to request a new or subsequent PD under the June Guidance expires on 31 October 2020.   

On 14 September 2020 the FCA published guidance on the next steps on mortgages including what support should be offered to borrowers who have already an initial and/or subsequent PD but are still in financial difficulty.

This latest guidance is effective from 16 September 2020.