Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the forbearance obligations on mortgage lenders under the Financial Conduct Authority's Mortgages and Home Finance: Conduct of Business sourcebook, in particular the duty to consider appropriate forbearance for borrowers in financial difficulty, apply independently of and continue beyond the six-month support options introduced under the Mortgage Charter; and what assessment the Government has made of the consistency with which those obligations are applied by lenders to borrowers who have exhausted Mortgage Charter support.

There are significant measures in place to protect vulnerable mortgage borrowers. Financial Conduct Authority (FCA) rules require lenders to engage individually with their customers who are struggling or who are worried about their payments to order to provide tailored forbearance. This could include a range of options; the right option will depend on the borrower’s circumstances.

The Government’s Mortgage Charter, which is a voluntary industry agreement that covers 90% of the mortgage market, provides additional flexibilities to help borrowers who are up-to-date with their repayments, manage their repayments over a short period.

If any borrower does not believe they have been treated fairly by their lender, they may be able to take their complaint to the independent Financial Ombudsman Service (FOS), which provides a free, independent dispute resolution service.

Importantly, any borrower who is concerned about making their repayment should contact their lender. Seeking support and engaging with lenders to discuss options will not affect a borrower’s credit score in any way, and earlier engagement will mean that lenders can offer more support.