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One-in-nine UK mortgage holders taking payment holidays

One-in-nine UK mortgage holders taking payment holidays

Over 1.2 million UK mortgage holders have taken advantage of payment holidays offered by lenders, laying bare the economic devastation caused by Covid-19.

Introduced on 17 March, the option to take a three-month breather on mortgage repayments has been taken up by one-in-nine households.

According to data collated by UK FInance, the number of payment holidays in place more than tripled in the two weeks between 25 March and 8 April, with around 61,000 being granted each day.

For the average mortgage holder, the payment holiday amounts to £260 per month of suspended interest payments.

Stephen Jones, UK Finance CEO, comments: “Mortgage lenders have been working tirelessly to help homeowners get through this challenging period. The industry has pulled out all the stops in recent weeks to give an unprecedented number of customers a payment holiday, and we stand ready to help more over the coming months."

Comments: (1)

A Finextra member
A Finextra member 14 April, 2020, 10:50Be the first to give this comment the thumbs up 0 likes

If the rumours are true that some banks (a) haven't passed on any savings in interest rate reductions to their customers and/or (b) have actually increased their rates on certain types of mortgages, this would suggest that the banks aren't actually doing anyone any favours, just robbing Peter to pay Paul.

The banks still need to do a lot more to win back the trust of the public.