The FSCS has confirmed that two mortgage firms went into default between November 2019 and January this year.

The first, NFS Mortgages Limited, was based in Merseyside and the second, NJ Associates, in Hampton.

The FSCS says that consumers could be in line for compensation if as a result of their dealings with any of the two firms they have lost money.

It adds that the scheme has helped more than 4.5 million people, paying out more than £26bn in compensation.

FSCS chief operating officer Jimmy Barber says: “FSCS provides protection when firms fail, reassuring people and enabling them to buy regulated financial products with confidence.

“We help put people back on track by offering a claims service that is fast and easy for our customers to use, offering support when our customers need it. Our friendly, award-winning customer service team is here to help.

“We know it can be a difficult time, so our claim experts are on hand to support you at every stage of your claim. It’s completely free and we’ll tell you straight away if you’re eligible to make a claim.”