The regulator said that under its proposals borrowers who already have a payment deferral for a period of less than 6 months would be able to extend that deferral. This would mean customers would be able to have a payment deferral for a maximum of 6 months.

For high-cost short-term credit (such as payday loans), consumers would be able to apply for a payment deferral of one month if they haven’t already had one. 

The regulator has said it will work with trade bodies and lenders on how to implement these proposals as quickly as possible, and will make another announcement shortly.

In the meantime, the FCA has urged that consumer credit customers should not contact their lender just yet. Lenders will provide information soon on what this means for their customers and how to apply for this support if the regulator’s proposals are confirmed.

The regulator has also said customers seeking to obtain a mortgage deferrals do not need to contact their lenders yet. Lenders will provide information after today on how to apply for this support.

Consumer credit customers who have already benefitted from payment deferrals and are still experiencing payment difficulties should speak to their lender to agree tailored support.

It may also be in the interests of consumer credit customers who expect to have long-term financial difficulties to agree other forms of tailored support with their lender.

The FCA said that may also be in the interests of mortgage borrowers who expect to have long-term financial difficulties to agree other forms of tailored support with their lender. 

Eric Leenders, managing director of Personal Finance at UK Finance, said: “Lenders are providing unprecedented levels of support to help customers through the Covid-19 crisis and stand ready to deliver ongoing assistance to those in need. The industry is working closely with the Financial Conduct Authority to ensure customers impacted by the new lockdown measures announced this evening will be able to access the most appropriate support. Customers seeking to access this support do not need to contact their lenders yet. Lenders will provide information after 2nd November on how to apply for this support.”

Robin Fieth, chief executive of the Building Societies Association (BSA), added: “Building societies and credit unions recognise the financial pressures on some households and will continue to work hard to support customers in the coming months, working closely with the FCA.”