The financial regulator and the Treasury put forward proposals last month which will have now been confirmed and start on 4 June 2020.
This only applies to mortgages, other consumer credit products such as credit cards are covered by separate guidance which will be updated later.
Full details are here but briefly borrowers who are already taking a payment holiday may apply to extend it for a further three months if still experiencing payment difficulties due to coronavirus.
It is not too late to apply for a mortgage payment holiday and you can do so for up to three months until 31 October if you need to.
However, the FCA emphasises that if you can afford to pay your mortgage then that is the best thing to do as a payment holiday will cost you more in the long run.
Repossession of homes has been suspended until 31 October 2020.
Christopher Woolard, interim chief executive at the FCA, said: “The measures we have confirmed today will mean anyone who needs to can get help from their lender, if they are still struggling to pay their mortgage due to coronavirus.
“It is important that if a consumer can afford to re-start mortgage payments, it is in their best interests to do so. Customers should talk to their firm about the best option available for them.”
Lenders will contact customers regarding what happens when their payment holiday ends. They should offer a range of options for how the missed payments will be repaid, if they are able to resume payments.
Lenders should also point borrower towards debt advice charities if they are struggling financially.
Click on the links below for FCA information:
FCA Information for consumers: dealing with financial difficulties during coronavirus – including useful links for finding advice
