Eight in 10 mortgage holiday borrowers now making payments
There were 130,000 mortgage payment deferrals in place at the end of December 2020, according to UK Finance – one in 84 mortgages.
This is down from a peak of 1.8 million in June 2020, when one in six borrowers was on a payment pause.
Analysis suggests that eight in 10 customers have now returned to making full mortgage repayments, and lenders remain committed to supporting mortgage customers facing financial difficulties.
New or extended payment deferrals and tailored support is still available if you can’t pay your mortgage.
Worried about your mortgage payments?
Mortgage lenders will continue to help both residential and buy-to-let mortgage customers facing financial difficulties due to Covid-19 over the coming months, following the extension of the payment deferral scheme until the end of July 2021.
Customers have until 31 March to apply for or extend a mortgage payment deferral. Mortgage holders who have not yet taken a payment deferral and now require support are encouraged to apply well before their February mortgage payment is due if they want to benefit from the full deferral period of up to six months.
Lenders have also announced their support for an extension of the ban on repossessions until 1 April 2021, to provide reassurance to borrowers that they will not have their homes repossessed at this difficult time.
What should you do next?
If you want to apply for or extend a mortgage payment deferral visit your lender’s website in the first instance to find out what options are available.
If you’ve already had a full six-month payment deferral, but are continuing to experience financial difficulty, contact your lender to discuss the tailored ongoing support. Missing a payment could show up in your credit file and may impact your ability to borrow or remortgage in the future.
Eric Leenders, managing director of personal finance at UK Finance, said: “Millions of people whose finances have been impacted by the pandemic have already received support from their lender through a mortgage payment deferral.
“With new lockdown restrictions in place, the banking and finance industry is continuing to help customers through these challenging times, including by providing tailored support appropriate to their needs.
“It will always be in the long-term interest of borrowers to resume making payments if they are able to do so. However, for anyone who is still struggling ongoing support will be available, and so we would urge customers to contact their lender to discuss their options before missing a payment.”