COVID-19 FCA statement on support for mortgage prisoners

Regulatory Updates | 01/05/20

The Financial Conduct Authority (FCA) has published a statement on its revised expectations for firms’ treatment of mortgage prisoners in light of the coronavirus pandemic. It notes that lenders have removed a large number of products from the market for all consumers since the beginning of March, and that lenders have granted 1.6m payment holidays.
Given that lenders are not yet in a position to offer new options for borrowers, the FCA is extending by three months (to 1 December 2020) the window during which it expects firms to contact mortgage customers who may be eligible to switch their mortgage. This is to avoid mortgage prisoners receiving communications encouraging them to switch product without suitable products being available to them.