One in six borrowers now on a payment holiday
One in six mortgages are now subject to a payment deferral, according to UK Finance.
The trade association said that 1.9 million mortgage payment deferrals have been granted to struggling homeowners three months on from the launch of the scheme.
What happens when they end?
Many homeowners will soon be coming to the end of the deferral period and lenders are now focused on helping customers to consider their next steps.
The range of ongoing support available includes:
- A further full or partial payment deferral
- A move to interest-only payments for a period
- Extending the term of the mortgage to reduce payments.
Eric Leenders, UK Finance managing director, personal finance, said: “Lenders understand that many households will continue to see their finances squeezed as the pandemic continues, and we are working hard to ensure everyone gets the support suited to their needs.
“The industry has a clear plan to help homeowners get through these tough times, and whilst it is best for customers to restart their payments if they can, where this is not possible lenders are keen to help, whatever a customer’s financial situation.”