Active mortgage payment holidays fall by 1.6 million 

The figures show a vast decline in the number of payment deferrals across financial products, with credit card payment breaks also dropping more than a million and personal loan repayment holidays plummeting by almost 730,000.

A total 97,300 deferrals are in still in place on credit cards, down from a peak of 1.13 million, and 64,400 remain on personal loans, after falling from 793,000.

This means that of the total 4.4 million deferrals granted across mortgages, credit cards and personal loans, some 323,700 are still active.

The latest guidance from the Financial Conduct Authority (FCA) states that lenders should continue to offer a range of support to borrowers, including those coming to the end of a deferral, who face financial difficulty due to the pandemic. The regulator has stressed expectations for tailored approaches to suit individual circumstances.

UK Finance’s figures were published at the same time as an FCA study, which shows that 31% of adults have seen a decrease in income in recent months with households seeing incomes fall by a quarter, on average.

Eric Leenders, managing director of personal finance, UK Finance, said: “The banking and finance industry is providing unprecedented levels of support to help customers through the Covid-19 crisis.

"We understand that many people’s finances will continue to be impacted by this pandemic and want to reassure them that ongoing help is available, tailored to their individual circumstances.”

Ongoing support for mortgage customers may include:
- Extending the length of the mortgage term;
- Changing the type of mortgage (e.g. a temporary change to an interest-only mortgage);
- Deferring payment of the interest or the sums due;
- Capitalising the interest accrued, i.e. adding the added interest owed to the balance of the loan.

Payment deferrals and the continued provision of forbearance for customers will be explored in a panel session at the Lending Summit, held on 16 and 17 November. The topic will also be explored during FSE-Week, our events for mortgage lenders and intermediaries. Both FSE-Week and the Lending Summit are part of the Credit Festival.