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FCA urges UK banks to consider cutting mortgage payments for those who are struggling.

FCA estimates 356,000 borrowers may be at risk of missing monthly payments by the summer of 2024

The UK regulator has told banks to consider slashing mortgage payments for borrowers struggling with rising bills, as it revealed that 356,000 homeowners could be at risk of missing their monthly mortgage payments by the summer of 2024.

The guidance from the Financial Conduct Authority confirms how lenders can support customers who have missed payments and are worried they may fall behind, including by extending the term of their mortgage to lower the monthly amount due or temporarily slashing payments.

However, it does not go as far as guidance issued during the Covid-19 crisis, when lenders were urged to provide more payment holidays and interest-only arrangements during pandemic lockdowns.

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