Landlords omitted from guidelines to help struggling ...

The Financial Conduct Authority has set out ways in which mortgage lenders can help customers struggling with payments - but landlords are not included.

The guidance will only cover ‘regulated’ products and not buy to let products used by landlords.

The FCA has also published new data and analysis on the mortgage market. This shows that, in addition to the households already behind on payments, 356,000 mortgage borrowers could face payment difficulties by the end of June 2024.

This is down 214,000 from the 570,000 borrowers the FCA previously estimated in September last year due to changes in the Bank of England base rate. Amongst this group those rolling off a fixed rate deal could end up paying an additional £340 a month on average.

Sheldon Mills, executive director of consumers and competition at the FCA, says: “If you’re struggling to pay your mortgage, or are worried you might, you don’t need to manage alone. Your lender has a range of tools available to help. Get in touch as soon as you have concerns, don’t wait until you’re about to miss a payment before doing so. Just talking to them about your options won’t affect your credit rating.”

The FCA’s research found that borrowers aged 18 to 34 are more likely to be financially stretched than the rest of the working age population. Those living in London and the South East are most likely to be stretched.

Being stretched does not necessarily mean borrowers will miss payments as some will be able to use savings, reduce spending, or increase incomes to help meet their mortgage commitments.

The FCA says that in the last 12 months mortgage lenders have already proactively contacted customers a combined total of 16.5 million times, across a range of channels. Following conversations with the FCA, lenders have confirmed they expect to increase this to 20.5 million contacts over the next year.

The FCA adds that it expects lenders to support borrowers in financial difficulty.

Its financial guidance confirms how lenders can support customers who have missed payments or are worried they may not be able to make payments in future. It covers options such as extending the term of their mortgage or making reduced monthly payments for a temporary period.

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