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UK Finance data shows 127,000 payment holidays still in place

Some 127,000 payments holidays were still in place in mid-November, a vast decline from a 1.8 million peak in June, according to the latest data from UK Finance.

The same data reports that payment breaks are falling across various products, with credit card deferrals falling to 55,000 from 84,000 at the end of October.

Personal loan payment deferrals have fallen by 23,000, from 50,000 at the end of October, to 22,000 at mid-November.

 

A total of 1.18 million payment deferrals have been granted on credit cards, and 828,000 personal loan payment deferrals have been granted over the course of the pandemic.

 

In November, the Financial Conduct Authority (FCA) confirmed the extension to the timeframe for payment deferral extensions. Those who currently have a payment deferral are eligible to apply for a further deferral, as long as the total length of the deferrals does not exceed a maximum of six months. The FCA has stated that all deferrals will end by 31 July 2021.

 

During the Credit Festival, mortgage lenders such as Skipton, Cambridge Building Society and Beverly Building Society revealed that around 90% of mortgage customers who took payment holidays resumed payments after the first deferral expired.

 

Eric Leenders, managing director of personal finance at UK Finance, said: “The banking and finance industry remain committed to helping customers get through these challenging times. Millions of people struggling with Covid related income shocks have been supported through payment deferrals, and lenders will ensure customers continue to receive the help they need.”

 

 

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