The UK financial regulator has unveiled a host of changes to how high-street lenders can offer mortgages in an effort to provide some relief to households.
The Financial Conduct Authority (FCA) said it had to “move quickly” to make changes that will mean lenders can offer borrowers the chance to switch to mortgage-only payments for six months, as well as extend the term of their mortgage to reduce monthly payments.
Borrowers will then be offered the chance to return to their previous term within six months, with the regulator stating options should be clear and accessible.
“If you can keep up with your mortgage payments, you should, as changing your contract could lead to higher payments down the line. But if you are worried about making your payments, contact your lender as soon as possible as they have a range of options to help,” said Sheldon Mills, executive director for consumers and competition at the FCA.
“Regulation cannot stop rates from rising, but the wider measures we’ve put in place over the past decade will make sure people get the support they need, when they need it,” Mills added.