City watchdog the Financial Conduct Authority has extended its current guidance so firms should not enforce repossessions before 1 April as a result of the pandemic, except in exceptional circumstances.

The FCA says: “This guidance applies in the exceptional circumstances arising out of the coronavirus (Covid-19) pandemic and its impact on the financial situation of mortgage customers.”

Following a short period for comments the body today finalised its guidance to firms on the treatment of mortgage customers facing repossession.

The watchdog says “we want firms to deliver the following outcomes”. These outcomes are:

• Customers receive appropriate forbearance that is in their interests after consideration of their individual circumstances.

• Firms support their customers through a period of payment difficulties and uncertainty, including by considering their other debts and essential living costs.

• Firms recognise vulnerability and respond to the particular needs of vulnerable customers.

• Firms have systems, processes and adequately trained staff, with any staff incentives aligned with providing their customers with the help they need.

• Customers should receive the support they need in managing their finances, including through self-help and money guidance. Firms should signpost or refer them to debt advice if this meets their needs and circumstances.

The FCA adds: “Given ongoing uncertainties arising from the impact of coronavirus, we will keep our position under regular review and will update or amend our guidance, or provide new guidance, if it is required.”

The watchdog’s guidance comes into effect on 29 January 2020.