But on 2 November, the FCA announced proposals to extend mortgage payment holidays, and then on 3 November it announced plans to also give other borrowers affected by the coronavirus crisis further support. In all cases, your lender should take extra care to consider if its appropriate to seek repossession at this time, especially if youre particularly vulnerable to circumstances related to coronavirus. The rules are as follows: If youve not yet taken out a payment holiday, youll be eligible for two payment deferrals up to a maximum of six months in total. A payment holiday (also called a freeze or deferral) is a period of time agreed with your lender when you dont have to make mortgage payments. Find out how we expect mortgage lenders and administrators to treat you if you're experiencing financial difficulties because of coronavirus (Covid-19). As a result, on Monday 2 November, we will propose updates to our guidance to support mortgage borrowers. This action will also be subject to any government restrictions on repossessions. However, its important to remember that: If your financial position improves, you can avoid extra costs by paying what you can. Its important to be open and honest about your financial situation with your mortgage lender, so you can agree an option that is right for you. If your lender agrees to provide you with more support, they should tell you what this will mean for you and your credit file. A partial payment holiday is when your lender lets you make reduced payments for a period of time. This could also happen if property prices fall before your property is sold. For example, lenders may consider your bank account information, your use of credit products, or how much you are in debt, when making a lending decision. This logo has been updated and is no longer in use. Your lender will work with you to find the best way of catching up on missed payments. Under its proposals to support those financially affected by coronavirus: Borrowers who've not yet had a payment holiday can apply for one. What coronavirus means for your finances Read our dedicated advice on mortgages, insurance, personal loans and overdrafts, and stay aware of any possible impact coronavirus could have on your money. But they should only do so as a last resort. Where a customer is experiencing or reasonably expects to experience payment difficulties as a result of circumstances relating to coronavirus, and wishes to receive a payment holiday, a firm should grant a customer a payment holiday for 3 monthly payments, unless it can demonstrate it is reasonable and in the customers best interest to do otherwise. 1 July 2020: Overdrafts and coronavirus: updated temporary guidance for firms. 3 July 2020: Rent-to-own, buy-now pay-later and pawnbroking agreements and coronavirus: draft temporary updated guidance for firms. Before agreeing to any support, your lender will need to collect information on your circumstances and should give you enough information so you can make an informed decision. Factors other than payment history may also be relevant. This should help to minimise the impact on your future credit prospects if you're able to get back on track at the end of a payment holiday. This assistance covers all general insurance. This content is provided by an external author without editing by Finextra. If you think youre in circumstances that mean youre vulnerable, its important to let your lender know when you contact them, so they can work out how best to support you.