The Financial Conduct Authority (FCA) has today told lenders they must show further leniency to clients struggling with mortgage repayments.

The regulator said it expected banks to offer further repayment holidays of up to three months where people were still having “temporary” difficulties in meeting repayments.

Those who were yet to apply for the initial three-month repayment holiday also had extended time to do so – up until the end of October. The current ban on re-poss...