FG17/4: The fair treatment of mortgage customers in payment shortfall: impact of automatic capitalisations

Open consultation: GC16/6
Consultation closes
Finalised Guidance

We are publishing finalised guidance on the treatment of customers with mortgage payment shortfalls. The guidance covers remediation for mortgage customers who may have been affected by the way firms calculate these customers’ monthly mortgage instalments.

Show FG17/4 (PDF)

In October 2016, we consulted on non-handbook guidance consultation GC16/6. The consultation sought views on a remediation framework for mortgage customers who may have been affected by the way some firms calculate customers' monthly mortgage payments.

We received feedback from a wide range of stakeholders representing both the mortgage industry and consumers. A summary of the feedback received has been published alongside the finalised guidance.

Our response

Respondents were broadly supportive of the guidance we consulted on, so the finalised guidance remains largely the same. We have made a small number of changes and clarifications. The key changes relate to:

  • removal of the June 2017 deadline for notifying affected customers
  • widening the scope of corrections to customer credit reference agencies records
  • asking firms to provide customers with details of debt advice services in their communications

Who this applies to 

This guidance is relevant to residential mortgage lenders and administrators of regulated mortgage contracts. This will also be of interest to mortgage customers and consumer groups representing customers who have experienced, or are experiencing, payment difficulties with their mortgage.