UK mortgage payment holiday extended by three months

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The Financial Conduct Authority has published draft guidelines for lenders to follow that set out options to be offered to borrowers.

These include resuming full monthly payments, making reduced payments, temporarily switching to an interest-only mortgage or extending their mortgage payment holiday. "Our expectations are clear: anyone who continues to need help should get help from their lender," said Christopher Woolard, the interim chief executive at the FCA. "Where consumers can afford to restart mortgage payments it is in their best interests to do so. We expect firms to work with customers on the best options available for them, paying particular attention to the needs of their vulnerable customers."

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The Treasury also announced on Friday that it was extending its ban on home repossessions to 31 October.

The extension of the mortgage payment holiday scheme follows the announcement by the chancellor, Rishi Sunak, last week that he was extending the furlough scheme, where the government pays 80% of an employee's wages up to ?2,500, which is supporting 8 million workers on behalf of struggling firms.

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