The FCA has set out new guidance that mortgage firms can use to help customers struggling with their mortgage payments as a result of the cost of living crisis.

The regulator stated that it expects firms to support their customers in “a range of ways that meet their needs”.

Guidance setting out options that firms can use to support their customers to manage their monthly mortgage payments has been issued by the FCA, alongside new information for borrowers affected by rising prices.

This draft guidance sets out the flexibility that firms have to support customers who have missed monthly mortgage payments or are worried they may not be able to make payments in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, switching to interest-only for a temporary period, moving to a different interest rate or making reduced monthly payments for a temporary period.

Executive director of consumers and competition at the FCA, Sheldon Mills, said: “Most borrowers are able to keep up with their mortgage payments and should continue to do so.

“But if you’re struggling to pay your mortgage, or are worried you might, you don’t need to struggle alone. Your lender has a range of tools available to help, so you should contact them as soon as possible.”

The FCA also revealed that it has attended a roundtable, hosted by the government, alongside mortgage lenders to discuss the support that some mortgage borrowers may need.

The regulator is closely monitoring the mortgage market and said it will continue to act so that consumers get the support they need.

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