Borrowers worried about missing mortgage payments should get in touch with their lender as soon as possible, the Financial Conduct Authority has said, with options potentially including reduced payments, term extensions and free debt advice.
More than two million customers received lender support — covering financial management help, debt-advice access or tailored mortgage forbearance — during the preceding year, the FCA figures show. The regulator’s guidance makes clear that FCA-regulated lenders must assess each borrower’s individual circumstances and offer appropriate support, though it does not guarantee that every borrower will qualify for a payment reduction, pause or change to loan terms.
The Bank of England has projected that around five million households could see mortgage repayments rise by the end of 2028 — up from nearly four million before the conflict in the Middle East began. For typical owner-occupier borrowers whose fixed-rate deals expire within the next two years, monthly repayments are projected to be about £45 higher than previously expected, according to the Bank’s July 2026 Monetary Policy Report.
Energy costs are adding to the pressure. Ofgem has set the energy price cap for a typical household paying by Direct Debit at £1,723 a year for the October-to-December 2026 quarter — a 4 per cent increase on the previous cap period. Energy suppliers, like mortgage lenders, are required to help customers who say they cannot pay, with options including repayment plans or emergency credit.
Any support arrangement can affect the total interest paid and the time it takes to repay a mortgage. Borrowers should continue making agreed payments unless an alternative arrangement has been confirmed with their lender.
Debt advisers point out that borrowers carrying several debts may need free, impartial advice and should contact all creditors — not just their mortgage lender.
Key information
- Contact your lender early — before missing a payment if possible; lenders must assess your circumstances individually
- Free debt advice is available and lenders may refer you to it; you can also seek it independently through services such as the Money and Pensions Service
- Any agreed changes to payment terms must be confirmed by your lender before you alter what you pay
- Energy bill struggles should be raised directly with your supplier, which is separately required to offer support
Source: @TheFCA
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