There were 127,000 mortgage payment deferrals in place in mid-November, a significant fall in customers seeking this form of support from June’s peak of 1.8 million, according to new UK Finance statistics.

The banking body also revealed that 55,000 credit card and 22,000 personal loan payment deferrals were in place for customers facing financial difficulty.

This total reflected a fall from 84,000 payment deferrals on credit cards and 50,000 on personal loans at the end of October.

UK Finance suggested the number of payment deferrals across mortgages and consumer credit has reduced in recent weeks as more customers have returned to making repayments, or sought alternative forms of tailored support from their lender.

The figures showed the estimated number of mortgage payment deferrals in place has been below 200,000 since early October, with industry analysis suggesting that 89% of those customers whose mortgage payment deferrals have ended have now returned to making repayments.

Mortgage lenders are continuing to provide support to homeowners struggling financially, in line with the FCA’s extension of the mortgage payment deferral scheme until 31 July 2021. This extension means that customers have until 31 March to apply or extend a payment deferral, up to a maximum period of six months.

UK Finance managing director of personal finance, Eric Leenders, commented: “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. The industry stands ready to provide assistance to those in need.”

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