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<p>The Financial Conduct Authority has said that, in light of COVID-19, insurers must
consider very carefully the needs of their customers and show flexibility in their
treatment of them.</p><p> </p><p>Consumers should check the terms of their individual
policies and contact their provider if they wish to make changes to their policy.</p><p>
</p><p>The Government encourages customers who are concerned about the current financial
situation to get in touch with their lender or insurer at the earliest possible opportunity
to discuss their options.</p><p> </p><p>On the 17 March, the Chancellor announced
on behalf of the sector that banks and building societies will offer a 3-month ‘mortgage
holiday’ for borrowers that are financially struggling with their repayments. This
forbearance measure will enable affected borrowers to defer their mortgage payments
for up to 3 months while they get back on their feet. In addition, the FCA issued
guidance confirming that this captures borrowers whose mortgage is in a closed book
or owned by a firm that is not regulated for mortgage lending.</p><p> </p><p>Furthermore,
lenders have agreed a 3-month moratorium on possession action to start immediately
to provide customers with reassurance that they will not have their homes repossessed
at this difficult time, meaning firms cannot commence or continue repossession proceedings
against customers at this time.</p>
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