The Financial Conduct Authority has confirmed that proposals to extend the availability of mortgage payment holidays will come into action from 20 November.

Along with this, the FCA says that nobody will have their home repossessed without their agreement until after 31 January.

As part of its announcement, the regulator “encourages firms that are able to start providing this enhanced support sooner to do so”.

Borrowers who have not had a payment deferral so far will now be eligible for a holiday of six months and those who are currently on a deferral will be able to top up to six months in total.

Additionally, borrowers who were previously on a payment holiday for fewer than six months will be able to top up their deferment until the six-month total is hit.

It adds that people who have already been on a payment holiday for six months will not be eligible – but firms will “provide tailored support appropriate to their circumstances.”

Borrowers have until 31 March 2021 to apply for a payment holiday and “borrowers who have not yet taken a deferral, and who think they need the full six months should apply in good time before their February 2021 payment is due,” says the watchdog.

FCA interim executive director of strategy and competition Sheldon Mills says: “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.”