From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to for wider content and updates from UK Finance.

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Minor FCA Handbook changes related to mortgage borrowers with a payment shortfall

Last updated: 10 Aug 2016

Consulting body:
Financial Conduct Authority
Period of consultation:
Runs from 10 June 2016 to 10 August 2016
CML action:
Response submitted

The FCA have published a Consultation Paper consulting on minor changes to their Glossary definition of ‘payment shortfall’, which sets out how firms should allocate payments received from customers who are experiencing a payment shortfall.

They are also consulting on related guidance.

The CML have now responded to this call for evidence and we support the view that any payment received from a customer with a payment shortfall is allocated solely to reduce the payment shortfall and/or to pay the current monthly instalment, until the payment shortfall balance has been cleared.

The full CML response can be downloaded below.