1.9 million mortgage payment deferrals offered in three months

Ryan Fowler

June 19, 2020

fca payment deferrals

Some 1.9 million mortgage payment deferrals have been offered to customers impacted by Covid-19 in the three months since the support was launched.

Figures from UK Finance found that one in six mortgages in the UK are now subject to a payment deferral.

And with many homeowners soon coming to the end of the deferral period lenders are now focused on helping customers to consider their next steps.

UK Finance said lenders will contact borrowers before the end of their deferral period with a range of options to ensure they are supported through the coming months, whatever their financial situation.

The range of ongoing support available includes a further full or partial payment deferral, a move to interest only payments for a period, or extending the term of the mortgage to reduce payments, depending on the borrower’s circumstances.

Customers who have not yet applied for a payment deferral and are experiencing financial difficulties and those requiring further support after an initial payment deferral can still apply until 31 October 2020.

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.”

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