Mortgages: Coronavirus

(asked on 13th March 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure banks offer flexibility in meeting monthly mortgage repayments to households whose finances may be disrupted by the economic effect of covid-19.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 19th March 2020

Financial Conduct Authority (FCA) rules set out requirements that mortgage lenders are expected to treat borrowers fairly and show forbearance when customers are in financial difficulty. The Government has made sure that repossession is always a last resort after other reasonable attempts to resolve the position have failed.

Banks and building societies are ready and able to support consumers impacted by COVID-19. On the 17 March, the Chancellor announced on behalf of the sector that banks and building societies will offer a 3-month ‘mortgage holiday’ for borrowers that are financially struggling with their repayments. This forbearance measure will enable affected borrowers to defer their mortgage payments for up to 3 months while they get back on their feet. Customers who are concerned about the current financial situation should get in touch with their lender at the earliest possible opportunity.

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