UPDATE 2-Britain extends help to coronavirus-hit borrowers

* England starts one-month lockdown on Thursday

* Payment deferrals available for up to six months

* Charity says self-employed, renters also need help
(Adds reaction)

By Huw Jones

LONDON, Nov 2 (Reuters) - Britain's financial watchdog said
on Monday it would extend payment holidays on credit cards, car
finance, personal loans and pawned goods before tougher
coronavirus restrictions come into effect this week.

Britain announced a one-month lockdown across England would
start on Thursday to contain a second wave of the pandemic.

Consumers who have not yet had a payment deferral under
guidance issued in July can request one that lasts for up to six
months, the Financial Conduct Authority said in a statement.

Borrowers who have already had one deferral would be able to
apply for a second deferral, the FCA said.

"Borrowers should only take up this support if they need
it," the FCA said in a statement.

For high-cost, short-term credit like payday loans,
consumers could apply for a payment deferral of one month if
they have not already had one, the FCA said.

"We will work with trade bodies and lenders on how to
implement these proposals as quickly as possible, and will make
another announcement shortly," the FCA said.

The new lockdown coincides with the traditional start of the
Christmas shopping season, a time of heavier use of credit cards
and a critical period for retailers seeking to stay in the black
for the year.

The FCA said on Saturday it would propose further relief for
up to six months to help mortgage borrowers and would make a
statement on Monday.

"Lenders will provide information after today’s announcement
on how to apply for this support," said Eric Leenders, managing
director of personal finance at UK Finance, a banking industry
body.

Money Advice Trust, a charity that helps people deal with
debt, said extending the availability of payment deferrals on
mortgages and consumer credit was sensible, but similar steps
were also needed to help the self-employed and renters.

(Reporting by Huw Jones; Editing by Rachel Armstrong and Edmund
Blair)