Chris is in arrears on his repayment mortgage. His lender agrees a temporary switch to interest-only for six months. Chris has no repayment strategy for the capital. Which statement is correct?
MCOB 11.6.43R says 11.6.41R(1) does not prevent a lender, when appropriate, from making a temporary concession accepting interest only from a customer in arrears or at risk of arrears. A variation made solely for forbearance is also outside the full affordability assessment (MCOB 11.6.3R(3)(c)). The lender must still consider whether the concession is right under MCOB 13 and the Consumer Duty (11.6.44G).
Applying the repayment-strategy rule to a short forbearance concession.
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