Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to help protect homeowners who have exhausted the six-month mortgage payment holiday from having their homes repossessed.

For borrowers that have already taken a full six months payment holiday and who continue to face ongoing financial difficulties, the FCA’s guidance sets out that firms should continue to provide support through tailored forbearance options. This could include granting new mortgage payment holidays. As part of this guidance any forbearance granted beyond six months of payment holidays will be reflected on the consumer’s credit file in the usual manner. As borrowers still requiring assistance after that point could be in serious financial distress the FCA believe it is right that lenders are able to understand their financial position in order to lend responsibly.

We understand this remains an uncertain time, and to reassure homeowners the period that lenders cannot repossess homes for has been extended. The FCA’s guidance released on 17 November sets out that lenders cannot issue a warrant for repossession until after 31 January 2021.