One in six mortgages are now covered by a payment holiday, with more than 1.82 million mortgage borrowers having been granted a payment holiday by lenders, according to the latest figures from UK Finance.
UK Finance has reported that lenders have welcomed the Financial Conduct Authority’s (FCA) draft guidance consultation, and the Prudential Regulation Authority’s (PRA) related publication, on continued support for borrowers via mortgage payment holidays.
It has also voiced its support for the halt on involuntary repossessions until 31 October.
Stephen Jones, CEO of UK Finance CEO, said: “Mortgage lenders are committed to providing those borrowers nearing the end of their three-month payment holiday with help and flexibility in choosing the next steps which best suit their needs.
“The industry looks forward to regulatory guidance being finalised swiftly to ensure both borrowers and lenders can plan over the coming weeks.
“Meanwhile those borrowers who have already taken a mortgage payment holiday and can afford to make payments are encouraged to do so, as this will reduce the level of their repayments in the long run.
“For those borrowers who have not already applied for a mortgage payment holiday, the industry supports the extension of the availability of payment holidays until 31 October 2020 as this will provide much-needed breathing space for borrowers who need it.
“Lenders are also committed to the moratorium on involuntary repossessions to ensure no homeowner loses the roof over their head because of COVID-19 related repayment difficulties.
“A payment holiday may not be the right choice for everyone, and borrowers should only apply if they need one. We would encourage any borrowers concerned about their financial situation to check with their lender, starting by looking at their website which will have the latest information on the support available.”