Deadline looms for mortgage holiday bids

Eight out of 10 mortgage customers who took a payment holiday are now back to making full repayments, according to new figures.

Banking and financial services trade association Finance UK says some 130,000 mortgage payment holidays were in place at the end of December because of the coronavirus crisis – down from the peak of 1.8million in June.

It means that, nationally, one in every 84 mortgages was subject to a payment deferral at the end of last year, compared with one in six in June 2020.

The mortgage payment holiday scheme runs until the end of July, to help those struggling financially as a result of the pandemic and the deadline to apply for a mortgage payment holiday is March 31.

People looking to take the maximum holiday of up to six months are being urged to apply before their February mortgage payment is due.

Those in financial difficulty are also being urged by the trade association to contact their lender before missing a payment.

Eric Leenders, managing director of personal finance at UK Finance, said: "With new lockdown restrictions in place, the banking and finance industry is continuing to help customers through these challenging times, including by providing tailored support appropriate to their needs.

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

"However, for anyone who is still struggling ongoing support will be available, and so we would urge customers to contact their lender to discuss their options before missing a payment."