Changes to mortgage payment holidays – Now known as mortgage deferrals

24th November 2020

Changes to mortgage payment holidays – Now known as mortgage deferrals

We know that during this difficult time a lot of people have been thinking about mortgage deferrals,
so we wanted to make sure that everyone stays fully informed with all the updates to them.


The Financial Conduct Authority has now confirmed updated guidance to firms setting out enhanced
support that should be available to mortgage borrowers experiencing payment difficulties as a result
of coronavirus. The guidance will be fully in force from 20 November but the FCA encourages firms
that are able to start providing this enhanced support sooner to do so.

The FCA reiterates that consumers should keep up with payments on their mortgage if they can
afford to do so and should only seek support where such support is absolutely necessary.
The FCA has also provided more detail on which groups of consumers will and won’t be able to
access payment deferrals:

  • Those who have not yet had a payment deferral will be eligible for payment deferrals of 6
    months in total.
  • Those who currently have a payment deferral will be eligible to top up to 6 months in total.
  • Those who have previously had payment deferrals of less than 6 months will be able to top
    up, as long as total deferrals don’t exceed 6 months. This includes those receiving tailored
    support and those who are behind on payments.
  • Borrowers who have already had 6 months of payment deferrals will not be eligible for a
    further payment deferral. Firms will provide tailored support appropriate to their
    circumstances. This may include the option to defer further payments.

The FCA has confirmed that firms will continue to offer tailored support to borrowers.

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Finance, Housing, Information, Mortgages