The Financial Conduct Authority has told UK lenders to either extend or restructure mortgages for borrowers who remain in difficulty when the ability to claim payment holidays comes to an end on 31 October.

The regulator said that customers who have taken a mortgage holiday during the Covid-19 pandemic will be expected to resume their payments. In a statement today, the City watchdog said that banks should consider the "appropriateness and use" of extending loan terms or restructuring mortgages. The FCA said that banks should refer customers with serious financial difficulties to debt advice.