CORONAVIRUS – payment holidays for borrowers and the implications for private banks

Banks have been offering payment holidays or more accurately payment deferral periods for mortgage loan repayments to borrowers in line with FCA guidance. This reflects the general requirement for lenders to treat customers fairly and exercise forbearance. In this article, we set out the requirements that lenders need to follow and the factors that need to be borne in mind by the banks when the payment deferral period comes to an end and the customer is still in financial difficulties.