The Financial Conduct Authority is updating its support for borrowers impacted by coronavirus following the government’s announcement on Saturday of a new national lockdown.

Mortgage borrowers who have not yet had a payment deferral can request one for up to six months.

Borrowers who already have a payment holiday for less than six months will be able to extend it. The maximum payment deferral remains at six months.

The FCA is working with trade bodies and lenders on how to implement this as quickly as possible, and will make a further announcement later today.

Borrowers should not contact lenders yet as they will provide information soon on what this means for their customers and how to apply for this support.

If borrowers who have already taken a six-month payment deferral are still struggling they should speak to their lender to agree tailored support.

UK Finance managing director of personal finance Eric Leenders says: “Lenders are providing unprecedented levels of support to help customers through the Covid-19 crisis and stand ready to deliver ongoing assistance to those in need.

“The industry is working closely with the Financial Conduct Authority to ensure customers impacted by the new lockdown measures announced will be able to access the most appropriate support.”

Building Societies Association chief executive Robin Fieth comments: “Building societies and credit unions recognise the financial pressures on some households and will continue to work hard to support customers in the coming months, working closely with the FCA.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, adds: ‘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.

“However, the advice remains the same – only ask for a payment deferral if you need one. Interest will still rack up and you will have more to pay off in the long run so the option should only be utilised by those who really need it.”

The FCA is also setting new deferral proposals for all credit borrowers with personal loans, credit cards, motor finance, rent to own, buy-now pay-later, pawnbroking and high-cost short-term credit.