Regulatory AlertsFG24/2: Guidance for firms supporting existing mortgage borrowers impacted by rising living costs
The Financial Conduct Authority issued finalised guidance FG24/2 to clarify how mortgage firms can support borrowers facing higher living costs under updated rules effective 4 November 2024. The document outlines flexibility for firms to provide forbearance and vary contract terms, such as reducing capital repayments or extending terms, often without requiring affordability assessments. It emphasizes the use of automated processes for scale while mandating fair treatment, appropriate customer engagement, and clear disclosure of implications for all arrangements.
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