0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter

Dear visitor,
You are viewing 1 of your 1 free articles


We’ve invested in our content to provide more news, analysis, features, interviews and opinions across a wide range of Credit and Financial Services. Register now to access more of the trustworthy, insightful information that’s on offer.

Register now or Login

Active mortgage payment holidays fall by 1.6 million 

Some 162,000 mortgage payment deferrals are still in place, after dropping from a peak of 1.8 million in June, according to UK Finance data.

Share on LinkedInShare on TwittereCard

The figures show a vast decline in the number of payment deferrals across financial products, with credit card payment breaks also dropping more than a million and personal loan repayment holidays plummeting by almost 730,000.

 

A total 97,300 deferrals are in still in place on credit cards, down from a peak of 1.13 million, and 64,400 remain on personal loans, after falling from 793,000.

 

This means that of the total 4.4 million deferrals granted across mortgages, credit cards and personal loans, some 323,700 are still active.

 

The latest guidance from the Financial Conduct Authority (FCA) states that lenders should continue to offer a range of support to borrowers, including those coming to the end of a deferral, who face financial difficulty due to the pandemic. The regulator has stressed expectations for tailored approaches to suit individual circumstances.

 

UK Finance’s figures were published at the same time as an FCA study, which shows that 31% of adults have seen a decrease in income in recent months with households seeing incomes fall by a quarter, on average.

 

Eric Leenders, managing director of personal finance, UK Finance, said: “The banking and finance industry is providing unprecedented levels of support to help customers through the Covid-19 crisis.

 

"We understand that many people’s finances will continue to be impacted by this pandemic and want to reassure them that ongoing help is available, tailored to their individual circumstances.”

 

Ongoing support for mortgage customers may include:
- Extending the length of the mortgage term;
- Changing the type of mortgage (e.g. a temporary change to an interest-only mortgage);
- Deferring payment of the interest or the sums due;
- Capitalising the interest accrued, i.e. adding the added interest owed to the balance of the loan.

 

Payment deferrals and the continued provision of forbearance for customers will be explored in a panel session at the Lending Summit, held on 16 and 17 November. The topic will also be explored during FSE-Week, our events for mortgage lenders and intermediaries. Both FSE-Week and the Lending Summit are part of the Credit Festival.

Share on LinkedInShare on TwittereCard
Add New Comment
You must be logged in to comment. Login or Register to access enhanced features of the website.

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

Listen on demand: Webinar - Tracking confidence in Car Finance

Listen on demand: Webinar - Tracking confidence in Car Finance

Car finance webinar at noon today to reveal and explore market's recovery 

Car finance webinar at noon today to reveal and explore market's recovery 

Mortgage approvals reach highest since 2007, as consumer credit remains ‘weak’

Mortgage approvals reach highest since 2007, as consumer credit remains ‘weak’

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group