Lenders grant 1.9 million mortgage deferrals

22 Jun 2020

The UK's mortgage lenders have granted 1.9 million payment deferrals to customers impacted by the coronavirus (COVID-19), according to the latest figures from UK Finance.

One in six mortgages are now subject to a payment deferral, and for the average mortgage holder that amounts to £755 per month of suspended payments.

The deferral scheme proved most popular in its first three weeks when 1.2 million deferrals were approved.

UK Finance said 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.

Customers who have not yet applied for a payment deferral and those requiring further support after an initial payment deferral have until 31 October 2020 to apply.

Commenting on the deferrals, Eric Leenders, Managing Director of Personal Finance at UK 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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