Over 1.2 million mortgage customers have received a payment holiday from lenders amid the ongoing pandemic, UK Finance has revealed.
Mortgage lenders first announced that they would support customers facing financial difficulties on 17 March, and by 8 April, over 1.2 million mortgage borrowers had been offered a payment holiday to support finances impacted by the crisis.
One in nine mortgages in the UK are therefore subject to a payment holiday, helping households across the country through the ongoing pandemic.
On average, a payment holiday amounts to £260 per month of suspended interest payments. Households can also benefit from the option of extending the scheme for up to three months.
UK Finance found that the number of mortgage payment holidays more than tripled between 25 March and 8 April, increasing from 392,130 to 1,240,680. This marks an increase of nearly 850,000 or an average of around 61,000 payment holidays being granted by lenders each day.
Stephen Jones, UK Finance CEO, said: “Mortgage lenders have been working tirelessly to help homeowners get through this challenging period.
“The industry has pulled out all the stops in recent weeks to give an unprecedented number of customers a payment holiday, and we stand ready to help more over the coming months.”
He added: “We understand that the current crisis is having a significant impact on household finances for people across the country. Lenders have a number of options available to help, and payment holidays aren’t always the right solution for everyone.
“We would therefore encourage any mortgage customers concerned about their financial situation to check with their lender so they can find out more information on the support available and how to apply.”
Robin Fieth, Building Societies Association CEO, said: “We know that this is a difficult time for many homeowners with a mortgage and building society staff have been working hard to offer individuals the right solution.
“For almost a quarter of a million so far, that has been a three month payment holiday offering a much needed breathing space to families whose household income is under severe pressure during the current crisis.”