"The industry has pulled out all the stops in recent weeks to give an unprecedented number of customers a payment holiday"
On 17 March, mortgage lenders announced they would support customers facing financial difficulties due to the Covid-19 crisis. Three weeks later, by Wednesday 8 April, over 1.2 million mortgage borrowers had been offered a payment holiday by their lender.
The number of mortgage payment holidays in place more than tripled in the two weeks between 25 March and 8 April, growing from 392,130 to 1,240,680. This is an average of around 61,000 payment holidays being granted by lenders each day.
The action taken by lenders means that one in nine mortgages in the UK are now subject to a payment holiday. For the average mortgage holder, the payment holiday amounts to £260 per month of suspended interest payments.
Stephen Jones, CEO of UK Finance, said: “Mortgage lenders have been working tirelessly to help homeowners get through this challenging period. The industry has pulled out all the stops in recent weeks to give an unprecedented number of customers a payment holiday, and we stand ready to help more over the coming months.
“We understand that the current crisis is having a significant impact on household finances for people across the country. Lenders have a number of options available to help, and payment holidays aren’t always the right solution for everyone. We would therefore encourage any mortgage customers concerned about their financial situation to check with their lender so they can find out more information on the support available and how to apply.”
Robin Fieth, CEO of the Building Societies Association, added: “We know that this is a difficult time for many homeowners with a mortgage and building society staff have been working hard to offer individuals the right solution. For almost quarter of a million so far, that has been a three month payment holiday offering a much needed breathing space to families whose household income is under severe pressure during the current crisis.”
