The regulator published finalised guidance for supporting mortgage borrowers struggling with payment difficulties due to the pandemic which will come into force on 20 November.

It said borrowers who had already had six months of payment deferrals would not be eligible for further help in this respect. But others who were facing financial challenges could access the payment holidays for six months.

They have until 31 March 2021 to apply for an initial or a further payment deferral. After that date, they will be able to extend existing deferrals to 31 July 2021, provided these extensions cover consecutive payments.

This additional support is being offered following the government’s announcement of a month-long lockdown in England.

In a statement today the FCA laid out which groups would be eligible for payment deferrals:

• Those who have not yet had a payment deferral will be eligible for payment deferrals of six months in total
• Those who currently have a payment deferral will be eligible to top up to six months in total
• Those who have previously had payment deferrals of less than six months will be able to top up, as long as total deferrals don’t exceed six months. This includes those receiving tailored support and those who are behind on payments.

The FCA said firms must provide tailored support appropriate to customers’ circumstances – this may include the option to defer further payments.

Sheldon Mills, interim executive director of strategy and competition at the FCA said: “Today we have confirmed further support for borrowers struggling financially as a result of coronavirus.

“The announcement we have made today, ensures that the support offered through payment deferrals is as flexible and accessible as possible.

“This means borrowers will again be able to access payment deferrals up to a maximum of six months. However, if you are able to keep paying it will be in your best long-term interest to do so. Payment deferrals should only be taken when absolutely necessary.”

The regulator has also confirmed that no one should have their home repossessed without their agreement until after 31 January 2021 and deferred payments would not appear on the borrower’s credit report as a ‘missed payment’.

Gemma Harle, managing director of Quilter’s network advice business, said: “For many borrowers this winter period might have looked bleak to say the least and this news coupled with the positive news about a slew of effective vaccines for Covid-19 could represent a glimmer of light at the end of the tunnel.”