DEMSA update: FCA on intermediaries & financial promotions / Consumer Duty / Vulnerability / SFS / Events

General update

The FCA has set out ways that mortgage firms can help customers worried about or already struggling with their mortgage payments as a result of the cost-of-living squeeze. This is relevant to the DEMSA deficit budget response (attached) to MaPS where the reduction in mortgage repayments may enable a deficit budget to be converted into a surplus budget with careful thought.

The FCA is consulting on draft guidance explaining a range of options firms have to support customers impacted by the cost-of-living crisis, including varying a contract for forbearance purposes. The deadline is 21 December 2022.


"Firms may vary a contract without assessing affordability  (as set out in MCOB 11.6.2R) when doing so solely for the purposes of forbearance where the customer has a payment shortfall, or in order to prevent one occurring (MCOB 11.6.3R(3)). This could include a contract variation which switches a repayment mortgage onto an interest-only basis for al...

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