Far fewer borrowers on mortgage holidays, as most resume payments
There’s been a significant reduction in customers seeking mortgage payment deferrals, according to UK Finance.
The financial trade body said that the majority of borrowers who took a payment pause have now resumed their payment to their lender.
In mid-November there were 127,000 mortgage payment deferrals in place, hugely down from June’s peak of 1.8 million.
Figures show that the estimated number of deferrals in place has been below 200,000 since early October, with industry analysis suggesting that 89 per cent of those customers whose mortgage payment deferrals have ended have now returned to making repayments.
What if you still need support?
Mortgage lenders will continue to provide support to homeowners facing financial difficulties, with the extension of the mortgage payment deferral scheme until 31st July 2021.
The extension to the scheme means that customers have until 31st March to apply for, or extend, a payment deferral, up to a maximum deferral period of six months.
If you haven’t yet sought support through the scheme you’re encouraged to apply well before your February 2021 mortgage payment is due. This will ensure you benefit from the full six month deferral period.
If you’ve already benefited from a full six month payment deferral, contact your lender to discuss tailored support if you’re still experiencing financial difficulty.
Eric Leenders, managing director of personal finance at UK Finance, said: “The banking and finance industry remains committed to helping customers get through these challenging times.
“Millions of people struggling with Covid-related income shocks have been supported through payment deferrals, and lenders will ensure customers continue to receive the help they need.
“It will always be in the long-term interest of borrowers who are able to do so to resume making payments, but for anyone who is still struggling ongoing tailored support will be available. The industry stands ready to provide assistance to those in need.”