UK's FCA to announce further support for mortgage borrowers

FILE PHOTO: A builder stands on a scaffolding as he works on a terraced house in Oldham, as the town faces local restrictions in an effort to avoid a local lockdown being forced upon the area amid the coronavirus disease (COVID-19) outbreak, Britain July 30, 2020. REUTERS/Phil Noble

(Reuters) - The UK Financial Conduct Authority said on Saturday it would propose updates to its guidance to support mortgage borrowers on Monday, as the British government announced further measures to control the spread of COVID-19 in England.

The FCA will propose that mortgage borrowers who have not yet had a payment deferral can request one for up to six months, it said in a statement.

Borrowers who already have a payment deferral for a period of less than six months would be able to extend that deferral for a maximum of six months, the FCA said.

“It may also be in the interests of mortgage borrowers who expect to have long-term financial difficulties to agree other forms of tailored support with their lender,” the FCA added.

It said it was also considering the implications of this approach for consumer credit, and that it was working to determine whether a similar approach should be adopted for consumer credit products.

Reporting by Juby Babu in Bengaluru; Editing by Kevin Liffey