Coronavirus (COVID-19)—UK Finance says over 1.2m mortgage payment holidays offered by lenders

Coronavirus (COVID-19)—UK Finance says over 1.2m mortgage payment holidays offered by lenders

UK Finance has published figures which reveal that over 1.2m mortgage payment holidays have been offered by lenders to customers impacted by the coronavirus (COVID-19) pandemic. The figures relate to the total first charge mortgage market, including residential and buy-to-let mortgages, and indicate that the mortgage payment holidays in place account for 11.2 per cent of total mortgages.

This action taken by lenders has meant 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, with many having the option of a three-month extension of the scheme. The figures show that between 25 March 2020 and 8 April 2020, the number of mortgage payment holidays in place more than tripled with an increase of nearly 850,000, an average of around 61,000 payment holidays being granted each day.

Mortgage borrowers impacted by COVID-19 are advised to contact their lender to discuss whether they are eligible for a mortgage holiday and whether it is suitable for them. 

Source: 1.2 million mortgage customers given payment holidays by lenders

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