89% of mortgage deferral borrowers return to making payments

The number of borrowers on mortgage payment deferrals has continued to reduce in recent weeks, according to the latest figures published by UK Finance.

As of 20th November 2020, an estimated 127,000 payment deferrals for mortgage holders were in place, a significant reduction from the peak of 1.8 million in June 2020.

UK Finance figures show that the estimated number of 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.

The FCA recently extended the mortgage payment deferral scheme until 31st July 2021. The extension to the scheme means that customers have until 31st March to apply for, or extend, a payment deferral, up to a maximum deferral period of six months.

Mortgage holders who have not yet sought support through the scheme are encouraged to apply well before their February 2021 mortgage payment is due to ensure they benefit from the full six month deferral period.89% of mortgage deferral borrowers return to making payments

UK Finance figures show that the estimated number of 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.

“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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