Banks grant 1.5m repayment 'holidays'

Almost 1.5million repayment holidays have been given to customers facing temporary financial difficulties due to coronavirus, according to the banking trade body.

Credit card companies have also granted payment freezes to 877,800 customer accounts - increasing by 26% since the start of the month, UK Finance said.

The group, which represents most UK banks, said its members have given almost 608,000 payment holidays on personal loans - up 30%.

Interest-free overdrafts of £500 have been offered to more than 27million customer accounts.

In total, 30m accounts have been helped, it added.

UK Finance said: "These steps by lenders to help people whose finances have been hit by the crisis are part of the banking and finance industry's plan, working with the Government and regulators, to help customers get through these tough times."

The organisation also say lenders have granted 1.8m mortgage payment holidays so far.

A payment holiday still means the interest must be paid at a later date in most cases, it added.

Stephen Jones, UK Finance CEO, said: "Banks and building societies will continue to help their customers get through the crisis and have a wide range of support available.

"Anyone with concerns about their financial situation should check with their lender to discuss which form of support would be the best choice for them."

UK Finance also said its members will also continue to support commercial landlords, with shops not opening until June 15 and pubs and restaurants not due to reopen until at least July.