Deadline today for payment holidays

BORROWERS have until the end of today to apply for a payment holiday on products such as mortgages, personal loans and credit cards.

Eligible customers who have not taken a break before or who have previously had a payment deferral totalling less than six months have until the close of business to get an application in.

Customers are warned not to leave it until the last minute.

Usually they have until the end of the day but timing could depend on how they interact with lenders.

Charles Roe, director of mortgages at UK Finance, said: “Millions of people whose finances have been impacted by the pandemic have already received support from their lender through a mortgage payment deferral.

Range

“The scheme will be in place until July 31 to support customers through continuing restrictions, with final applications due by March 31.

“It will always be in the long-term interest of borrowers to resume making payments if they are able to do so.”

The Financial Conduct Authority said that as demand for payment holidays reduces, lenders will provide a range of help based on need and circumstance.

Firms are expected to ensure all staff are adequately trained and have appropriate oversight of staff to ensure the right support is provided.

According to UK Finance, 2.75 million mortgage payment deferrals were granted up until the end of 2020, with 1.8 million at the June 2020 peak.

By the end of last month, 104,000 were still in place, equating to 0.9 per cent of mortgage stock, compared with 17 per cent at the June peak.