After the announcement made by the Prime <inister regarding tightening Covid-19 restrictions with a further lockdown in England, mortgage lenders will be able to extend mortgage holidays to customers for a further 6 months.
The Financial Conduct Authority (FCA) in their statement said, “Lenders will provide further information to their customers after the 2nd November on how to apply for support, so there is no need to contact them”.
Mortgage borrowers that have not had a payment deferral can request one for up to 6 months and anyone that has already had a payment deferral for a period of 6 months or less will be able to extend that deferral.
The FCA will make further announcements later today on also the deferral of other credit arrangements such as car loans, credit cards, personal loans, HP credit for 6 months and up to 1 month deferral for 'pay day' loans.
This piles even more pressure on bank and lending groups. Expect rate rises, expect new charges on current accounts and higher charges for credit card use. For businesses, expect even higher business banking, card merchant account and other card payment service charges.