Watchdog calls for end of mortgage payment holidays
The Financial Conduct Authority (FCA) has suggested that homeowners struggling with mortgage repayments should not be offered payment holidays, saying that that further breaks are “unlikely to be the appropriate solution” for borrowers. While lenders have been offering three month repayment breaks on mortgages, credit cards and personal loans amid the coronavirus crisis, the FCA says new measures may be more appropriate, such as extending the term of the loan or allowing borrowers to resume payments at a lower level than they were before the crisis. Analysis shows that while one in every five mortgages in Britain went unpaid at the peak of the crisis, far fewer borrowers applied for a second three-month pause on payments.
The Daily Telegraph