Mortgage support measures announced
For those borrowers who are still finding it difficult to make their mortgage repayments due to the pandemic, according to new guidelines issued by the Financial Conduct Authority (FCA), they should be offered ‘tailored support’ from their lenders.
At present borrowers are supported by the mortgage payment holiday scheme, although as at mid-September this was due to end on 31 October. The new guidelines propose a further range of short and long-term options that reflect each customer’s specific circumstances. These include extending the mortgage term, restructuring the mortgage or reducing payments for a fixed period. Meanwhile, borrowers who can resume their repayments are strongly encouraged to do so, with the FCA reminding consumers that interest will continue to accrue while payments are stopped or reduced.
Granny and Grandad help out
Nearly half (48%) of grandparents have stepped in to shore up their financially struggling children and grandchildren during the COVID-19 pandemic, research1 suggests. This help has come in the form of cash (32%), childcare (8%) and even assistance with rent and mortgage payments (6%).
1Killik & Co, 2020
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.