Regulatory AlertsPS23/8: Mortgage Charter enabling provisions
The UK Financial Conduct Authority amended its MCOB sourcebook to implement the Government’s Mortgage Charter by allowing mortgage lenders to offer temporary payment relief without new affordability assessments. These changes permit borrowers to reduce capital repayments for up to six months or reverse term extensions within six months, provided they receive sufficient information to make informed choices. The rule changes took effect on 30 June 2023 to help financially stretched borrowers manage rising interest rates and will be reviewed within twelve months.
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