Home repossessions to leap more than ten-fold by 2022
The regulator is keeping this date under review, but UK Finance forecasts suggest we could see home repossessions rise from 2,900 last year to 22,300 by 2022.
Mortgage arrears will also rise to 142,200 this year from 81,300 last year according to the trade body, but fall back to 120,900 in 2022.
FCA guidance released this month: ‘Mortgages and Coronavirus: Tailored support guidance‘ outlines the protocols mortgage lenders and other financial firms should employ if borrowers are struggling.
Its payment deferral guidance confirms all borrowers can delay payments for up to six months as long as the last monthly installment is no later than July 2021.
All customers should receive appropriate forbearance from their lender and the regulator states: “Customers should receive the support they need in managing their finances, including through self-help and money guidance. Firms should signpost or refer them to debt advice if this meets their needs and circumstances.”
The regulator offers consumer guidance here including speaking to the lender in the first instance and repaying anything toward the monthly payment, even a reduced amount.