Payment deferrals: Lenders to support borrowers

Payment deferrals Lenders to support borrowers blackboard in hand

The banking and finance industry continues to support thousands of borrowers with payment deferrals. According to the latest figures from UK Finance, mortgage lenders will continue to provide support to homeowners facing financial difficulties

The number of customers seeking support from deferrals has dropped significantly since earlier this year. As of mid-November, there were still 127,000 mortgage payment deferrals in place. November’s figure is a significant reduction from 1.8 million borrowers in June.

Further, there are 55,000 credit card payments in place, down from 84,000 payment deferrals at the end of October.

Additionally, there are 22,000 personal loan payment deferrals in place, a drop from the 50,000 in place at the end of October.

Therefore, 89 per cent of those customers whose mortgage payment deferrals have ended have now returned to making repayments.

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Commenting on the figures, Eric Leenders, Managing Director of Personal Finance at UK Finance, said:

‘The banking and finance industry remains 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.

‘It will always be in the long-term interest of borrowers who are able to do so to resume making payments, but for anyone who is still struggling, ongoing tailored support will be available.

Eric Leenders further insisted: ‘The industry stands ready to provide assistance to those in need.’

Support will be available both for those who have previously taken a payment deferral and those who are new in financial difficulty.

Customers still on a deferral at the end of March can apply to extend for up to a further three months if they have not taken the full six-month deferral. The FCA has stated that all deferrals will end by 31 July 2021.

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