Regulatory AlertsFG23/2: Guidance for firms supporting existing mortgage borrowers impacted by rising living costs
The Financial Conduct Authority issued finalised guidance clarifying how mortgage firms can support borrowers facing higher payments due to rising living costs. The document outlines the flexibility firms have to provide forbearance and vary contract terms, such as term extensions or interest-only switches, often without requiring new affordability assessments. It emphasizes that firms must use appropriate digital channels and controls to ensure these options are suitable for individual customer circumstances while avoiding inappropriate arrangements.
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