Overview
- Lenders have reported a rise in borrowers sending paid promissory notes in place of mortgage payments, triggering the fresh FCA alert.
- People are typically paying about £500 or more for these documents, which make no payments and can deepen arrears.
- Lenders are rejecting and returning the paperwork and will discuss legitimate options such as extending terms, temporary interest-only arrangements or payment holidays.
- The Financial Ombudsman Service says it has seen complaints based on these notes and has not upheld cases using such arguments.
- UK Finance stresses the notes are not a valid way to pay and urges borrowers to contact their lender or free debt-advice services including National Debtline, StepChange, Citizens Advice and MoneyHelper.