The FCA guidance on mortgages states that lenders should:
- Grant existing customers a payment holiday for an initial period of 3 months if they may experience payment difficulties as a result of coronavirus and where they have indicated that they wish to receive one;
- Ensure that there are no additional fees or charges (other than additional interest) as a result of the payment holiday. The additional interest may be chargeable because the holiday period is added as an extension to the term of the loan; and
- Ensure that the holiday period has no impact on any assessment of a customer’s credit rating.
The FCA will continue to review measures as the situation develops and will update their guidance if necessary. This guidance is a welcome support to those homeowners who may encounter financial difficulty in these uncertain times.