Lenders have issued 1.86 million mortgage payment holidays as of 28 May 2020, new figures from UK Finance have revealed.

The banking body said the amount is equivalent to one in six mortgages in the UK.

UK Finance suggested that lenders are committed to helping customers in financial difficulty as a result of coronavirus, including through the extension of mortgage payment holidays if appropriate.

The FCA confirmed today that lenders should continue to offer support to customers including either a full or part payment holiday for a further three months, while customers yet to apply for a payment holiday will have until 31 October 2020 to apply.

UK Finance CEO, Stephen Jones, commented: “For those customers who are nearing the end of their three-month payment holiday, providers are offering them help and flexibility to choose the next steps which best suit their needs.

“It will always be in the borrower’s best interests to pay their mortgage if they are able as this will reduce the level of their repayments in the long run but for those customers who are struggling, help is available.

“The extension of the payment holiday scheme until 31 October 2020 for customers yet to take to one will provide much-needed breathing space for those who need it, while the continued moratorium on involuntary repossession will ensure no homeowner loses their home because of the impact of COVID-19 on their finances.”

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