Lenders must help struggling borrowers - FCA
By Abigail Townsend
Date: Friday 10 Mar 2023
(Sharecast News) - Mortgage providers must support struggling borrowers, the financial regulator reiterated on Friday, as it warned that an additional 356,000 households were at risk of falling into financial difficulty.
Publishing an analysis of the mortgage market, the Financial Conduct Authority said that in addition to households already behind on payments, 356,000 more mortgage borrowers could face payment difficulties by the end of June 2024.
The figure is, however, down from the 570,000 previously estimated by the FCA last September, due to likely changes in the Bank of England base rate.
The research also found that younger borrowers aged 18 to 34 and those living in London and the south east were likely to be the most stretched financially.
Sheldon Mills, executive director of consumers and competition at the FCA, said: "Our research shows most people are keeping up with mortgage repayments, but some may face difficulties.
"If you're struggling to pay your mortgage, or are worried you might, you don't need to manage alone. Your lender has a range of tools available to help. Get in touch as soon as you have concerns. Just talking to them about your options won't affect your credit rating."
The regulator said it expected all lenders to support borrowers in financial difficulty. Options included extending the term of mortgage or allowing reduced monthly payments for a temporary period.
Around 200,000 mortgage borrowers were in payment shortfall as of June 2022, according to the FCA.
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