Action urged on mortgage help loophole

Banks have been accused of moving the goalposts after it emerged that they could reject applications from homeowners who asked for help during the COVID-19 pandemic. The Financial Conduct Authority has said banks cannot leave a black mark on the credit file of customers who have faced financial difficulty during the crisis. However, the rules allow mortgage lenders to examine bank statements to see if a payment break was taken, and may use the information to decide on future applications. Shadow chancellor Anneliese Dodds has called for urgent action to ensure homeowners are not disadvantaged.

The Daily Telegraph (05/06/2020)