1.9 million mortgage payment deferrals have been granted to homeowners, three months since the launch of the scheme.
One in six mortgages are now subject to a payment deferral and for the average mortgage holder, the payment deferral amounts to £755 per month of suspended payments. 1.2 million deferrals were approved during the first three weeks of the scheme.
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. They will contact borrowers before the end of their deferral period with a range of options to ensure they are supported through the coming months, whatever their financial situation. Borrowers who can afford to resume payments should do so, as it will always be in their best interests in the long run. However, for those who can’t, then help is at hand. Where possible, borrowers will be able to explore their options online.
The range of ongoing support available includes a further full or partial payment deferral, a move to interest only payments for a period, or extending the term of the mortgage to reduce payments, depending on the borrower’s circumstances.
Customers who have not yet applied for a payment deferral and are experiencing financial difficulties and those requiring further support after an initial payment deferral can still apply until 31 October 2020.
Eric Leenders, UK Finance managing director, personal 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.”