Rules that protect UK homeowners from repossessions may be scrapped
FCA boss says mortgage charter up for review amid pressure from the chancellor to remove red tape for firms
The City watchdog is considering scrapping rules meant to protect struggling homeowners from having their homes repossessed, in the latest sign of regulators reacting to pressure from the chancellor, Rachel Reeves, to remove red tape for businesses.
The chief executive of the Financial Conduct Authority (FCA), Nikhil Rathi, said the much-lauded mortgage charter was up for review as the body tries to show it is addressing accusations that its rules have hindered economic growth.
No home would be repossessed within 12 months of the first missed payment.
Customers could seek advice from their lender without it affecting their credit score.
Customers could switch to an interest-only deal for six months; or extend their mortgage term and revert back within six months if they want. Neither option requires an affordability check or will affect their credit score.
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