Lenders’ deferrals helping debtors

Britain’s lenders have provided more than a million payment deferrals on credit cards to help customers whose finances have been affected by Covid-19 over the past three months, according to new figures from UK Finance.

The trade body’s members have also provided nearly 707,000 payment deferrals on personal loans for customers impacted by the pandemic.

In addition, more than 27m customer accounts have been offered three months of interest-free borrowing on the first £500 of their arranged overdrafts if needed.

UK Finance said the “unprecedented” support by the banking and finance industry included 1.9m mortgage payment deferrals, increasing the contactless limit to £45 and providing £46 billion of lending to more than 1.1m businesses through government Covid-19 lending schemes.

Managing director Eric Leenders added: “Many borrowers facing financial pressures are taking up the measures being offered by lenders to help them get through this crisis.

“The banking and finance industry has a clear plan to help the country through these tough times and is committed to providing ongoing support to those customers who need it.

“If you are facing temporary financial difficulties due to the coronavirus pandemic there will be support still available to help you through these challenging times.”

Borrowers who are yet to request a payment deferral or an arranged interest-free overdraft of up to £500 have until October 31 to apply.

“Borrowers... are taking up the measures being offered”