This is according to the FCA which has offered more detail about how it wants firms to help customers as the industry moves away from the ‘crisis’ stage of dealing with those financially impacted by the pandemic to implementing a more tailored approach.

This includes finding ways to ensure staff are adequately supported – particularly if working from home – so they can deliver the best treatment to customers.

And it also means prioritising support for those borrowers who are most risk of harm or who face the greatest financial difficulties.

Speaking at the Mortgage Forbearance Webinars, Jonathan Davidson, executive director of supervision, retail and authorisations, praised the mortgage industry for doing an ‘amazing job’ delivering a large number of mortgage deferrals.

Most of these deferrals had now expired, he explained, but there will still be a ‘significant minority’ of customers who face ongoing difficulties. “We all need to work together so they get the best possible outcomes,” he said.

Operational challenges

In his speech, which the FCA promoted today, Davidson also acknowledged how remote working and social distancing had created challenges for firms.

“It is a demanding job at any time to be on the frontline, supporting customers in financial distress,” he said.

“It must be so much harder for staff when they are working from home, particularly if they don’t feel adequately supported. So, they need to be supported, so that in turn customers are treated well.

“And don’t forget those third-party firms that you are outsourcing to – you will need to continue to monitor them to check that they are delivering the good customer outcomes that you expect.”

Support for borrowers

Davidson referred to the FCA’s recent mortgage guidance, which confirms the next stage of support for mortgage borrowers and recognised the important of prioritising those borrowers most at risk of harm and who faced the greatest financial hardship.

He added: “It should go without saying that it remains as important as ever to deliver outcomes that are right for the individual borrowers – rather than adopting ‘one size fits all’ solutions. This has been our mantra for many years – and continues to be so.”

Helping the number of borrowers requiring support in a short period of time, Davidson acknowledged, would be challenging.

He added: “Some firms are proposing to deal with this through approaches which are more automated than we would usually see for mortgage borrowers in payment difficulties, and I hope the guidance has clarified our view on digital solutions.”

He added: “It will be no surprise to hear that we want to see these automated approaches delivering appropriate outcomes, in a way that supports customer understanding. And that more hands-on support is available for those that need it.”

Where customers do follow a more automated journey Davidson said the FCA wanted them to understand the implications of the option they agree to.

“You will of course need to monitor the outcomes they receive – so that you can act quickly to fix any issues and put them back in the right position,” he added.