FS20/14: Mortgages and coronavirus: additional guidance for firms – feedback on draft guidance for mortgages

Our guidance published in June 2020 will continue to provide support for those impacted by coronavirus until 31 October 2020 – with consumers able to take a first or second 3 month payment deferral until this date.

Read the feedback statement (FS20/14)

On 26 August 2020, we published additional draft guidance on the fair treatment of home finance customers in temporary payment difficulty as a result of the current exceptional circumstances arising out of coronavirus (Covid-19).

This feedback statement summarises the feedback we received on our proposed measures and our response. This additional guidance set out our expectations on firms to ensure that:

  • firms continue to provide tailored support to customers facing financial difficulty as a result of coronavirus 
  • customers receive appropriate forbearance that is in their interests after consideration of their individual circumstances
  • this applies both to customers who have benefitted from payment deferrals under the June guidance and remain in financial difficulty, as well as those who are affected by coronavirus after 31st October 2020
  • this support reflects the uncertainties and challenges that many customers will face in the coming months

We wanted to act quickly to protect consumers in these difficult times and, therefore, did not formally consult on the proposals or produce a cost benefit analysis. We consider that the delay in doing so would be prejudicial to the interests of consumers. However, we invited comments on our proposals and we received 22 responses from firms, trade bodies, consumer groups and individuals.

Who this affects

The guidance affects:

  • home finance providers and administrators
  • authorised firms in respect of unregulated agreements to provide credit that is secured on land

It is also relevant to obligations that authorised and non-authorised persons might have under general consumer protection law.

Action and next steps

The guidance comes into effect on 16 September 2020. The guidance applies in the exceptional circumstances arising out of the coronavirus pandemic and its impact on the financial situation of mortgage customers.

Given ongoing uncertainties arising from the impact of coronavirus, we will keep our position under regular review and will update or amend our guidance, or provide new guidance, if it is required.