The regulator was today expected to propose updates to its guidance on how to support mortgage borrowers struggling to afford repayments because of the impact of the government measures to control the spread of Covid.

It comes following confirmation the housing market would remain open during the second national lockdown, which is set to run in England from 5 November to 2 December.

In a statement published at the weekend the FCA said, to support those financially affected by coronavirus, it would propose mortgage borrowers who had not yet taken a payment deferral could request one. This support could last for up to six months.

What’s more, under the proposals borrowers who already had a payment deferral for a period of less than six months would be able to extend that deferral. This would mean customers would be able to have a payment deferral for a maximum of six months.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “It is good to see such decisive action taken so quickly. Many borrowers will be worrying about paying their mortgage and extending payment deferrals for a further six months will provide them with some comfort.”

The FCA reiterated previous guidance that only those borrowers who really needed to take the payment deferrals should do so. Borrowers who could afford to should continue to make repayments.

Earlier today the FCA announced similar support for people facing difficulties repaying loans, credit cards, overdrafts and other forms of consumer credit.

Housing market

The industry has also welcomed news the property market would remain open during the month-long lockdown.

Kate Davies, executive director of IMLA, was among those who welcomed the news. She said: “While the country faces a second national lockdown, the government has rightly decided to keep Britain’s housing market open.

“Lenders, advisers, surveyors, and conveyancers are already experiencing unprecedented levels of demand from consumers eager to take advantage of the government’s Stamp Duty holiday, which is due to end on 31 March 2021, and also the Help to Buy scheme, which will be available only to first-time buyers from 1 April 2021.

“They now face the task of helping thousands more consumers potentially requesting payment deferrals as borrowers struggle to meet their mortgage repayments during the lockdown. Closing the housing market at this time would have only added to this pressure on the sector by creating yet another backlog of demand once lockdown ends.”