Supporting Mortgage Customers Through Financial Difficulty

Workshop overview

This two-day workshop provides structured, practical training to help mortgage professionals support customers who are in or approaching financial difficulty. It focuses on how to recognise early signs of stress, complete robust affordability assessments, apply proportionate forbearance, and deliver fair and sustainable outcomes in line with regulatory expectations and good industry practice.

Learning outcomes:

By the end of this workshop, participants will be able to:

understand the current mortgage landscape and the regulatory context around financial difficulty
identify early signs and triggers of financial stress in customers
apply appropriate tools and timing to respond to emerging financial difficulty
conduct robust affordability assessments using a structured, compliant approach
implement proportionate and effective forbearance solutions tailored to individual customer needs.
drive fair outcomes and demonstrate good practice in line with FCA expectations
build confidence through real-life case studies and practical application.

Interested in taking any of our workshops in-house?

Whether you are seeking to upskill your team, enhance productivity or foster a culture of continuous learning, we can deliver customised training programmes designed to meet your specific needs. If you have an enquiry, you can complete the in-house form and our training team will be in touch with next steps.

IN-HOUSE TRAINING

Area of expertise:

Mortgages

Workshop structure - two-day agenda

While this workshop is designed around six core modules, the structure may be adapted based on the experience and learning needs of the attending audience. Scenario-based learning and exercises will be used throughout to reinforce key principles and ensure practical application in real-world situations.

Day one

Module one: The mortgage landscape – regulation, risk and reality

Understand current customer behaviour trends, including the impact of economic shifts such as inflation, employment changes, and reduced savings buffers.
Explore the regulatory framework, including the FCA’s Consumer Duty, MCOB rules, and IRB expectations.
Map out the customer journey from emerging financial difficulty to long-term resolution, identifying where intervention is most effective.

This module lays the groundwork by aligning external economic factors with the regulatory and operational context of mortgage support. Attendees will leave with a clear understanding of why financial difficulty is a priority across both customer service and risk management.

Module two: Spotting financial difficulty – triggers, tools, and timing

Identify early signs of potential stress, including changes in payment behaviour or requests for revised terms.
Apply recognised frameworks (TEXAS, IDEA, BRUCE) to explore vulnerability and financial risk.
Understand when to intervene and how early support improves long-term outcomes for both the customer and the lender.

This module focuses on early recognition and proactive response. Participants will improve their ability to spot risks before they escalate into arrears or regulatory breaches, ensuring earlier engagement and better solutions.

Module three: Using forbearance – purpose, parameters, and pitfalls

Define what constitutes forbearance and how it differs from restructures or product changes.
Explore practical support options for mortgage customers, including interest-only switches, extended terms, and reduced payment arrangements.
Understand how forbearance can cause harm if overused or misapplied and recognise when escalation is necessary.

By the end of this module, participants will understand how to use forbearance with purpose, assess its suitability for different customer types, and mitigate the risk of prolonged dependency or repeat cycles of difficulty.

Day two

Module four: Affordability assessment – capture, confirm and consider

Learn how to conduct accurate income and expenditure (I&E) assessments and differentiate between essential costs and discretionary spending.
Apply policy standards and benchmark data (e.g. ONS cost guidelines) to assess capacity to repay.
Document the rationale for decisions clearly to support audit trails, customer understanding, and regulatory compliance.

This module develops core technical skills around assessing affordability. Participants will leave with a repeatable structure for reviewing financial information, calculating capacity, and confidently documenting and defending their assessments.

Module five: Driving fair outcomes – customer, credit, and compliance

Balance the customer’s immediate needs with long-term repayment viability and the firm’s risk appetite.
Ensure outcomes are suitable and sustainable, particularly for vulnerable customers.
Review real-world examples of fair and poor outcomes, identifying how the FCA defines, measures, and challenges treatment decisions.

Here, participants apply judgment across credit and conduct lenses. This session helps translate guidance into practice and ensures staff can consistently apply a fair and justifiable approach in line with evolving regulatory expectations.

Module six: Real case practice – assess, decide, and justify

Work through a range of real-world individual and business mortgage scenarios.
Apply assessment frameworks to determine suitable treatments and document rationale.
Peer review responses and evaluate how well the proposed outcomes hold up to internal and regulatory scrutiny.

This final session solidifies the learning by applying it in a practical, discussion-led environment. Participants will leave more confident in handling complex cases, making proportionate decisions, and clearly evidencing those outcomes.

Conclusion
This is a general industry workshop designed to support improved understanding and application of customer treatment principles in the mortgage sector. It does not constitute legal, regulatory, or compliance advice and should not be relied upon as such.

Individual firms must always ensure that any actions taken are consistent with their internal policies, applicable regulations, and professional legal or compliance guidance. The frameworks and examples shared are intended to support learning and stimulate discussion. They should always be adapted to reflect each firm’s approach and verified through appropriate internal channels.

Shannon Faulkner

Shannon Faulkner is a specialist in collections, recoveries, and customer treatment, with over 20 years’ experience supporting firms across banking, m...

Shannon Faulkner is a specialist in collections, recoveries, and customer treatment, with over 20 years’ experience supporting firms across banking, motor finance, and fintech. Her work spans operational leadership, regulatory compliance, and the design of effective training for frontline and oversight teams.

Known for her ability to translate complex requirements into clear, actionable steps, Shannon has delivered training on numerous industry topics including affordability, forbearance, and fair outcomes to professionals at all levels. She draws on real-world casework and hands-on delivery experience to ensure her sessions are practical, relevant, and rooted in both customer and business realities.

This course reflects her commitment to raising standards in how financial services firms identify and support customers in financial difficulty – equipping participants with the tools and frameworks they need to act confidently and compliantly.

This workshop is aimed at professionals working in:

mortgage lending and advice
credit risk, collections, or customer support
oversight, assurance, or conduct teams
policy, vulnerability, or regulatory compliance roles.

Level: Foundational to Intermediate

This is suitable for those new to the industry or stepping into roles where they support mortgage customers in or approaching financial difficulty. It is also appropriate for professionals with experience in other areas of financial services who are transitioning into customer treatment, affordability assessment, or oversight responsibilities.

Participants will benefit most if they have a basic awareness of mortgage products or regulated customer contact, but do not need prior experience with forbearance or collections. The workshop blends regulatory understanding, real-world case examples, and structured decision-making tools to build both confidence and competence.