Today final day for borrowers to apply for payment holiday on mortgages, cards and loans
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 payment holiday before, and those who have previously had a payment deferral totalling less than six months, have until tonight to apply.
Payment holidays are generally due to come to an end in July.
The Financial Conduct Authority (FCA) has said recently that as demand for payment holidays reduces, lenders will provide a range of tailored support based on customers’ individual needs and circumstances.
The regulator said firms are expected to ensure all staff are adequately trained and have appropriate oversight of new staff to ensure the right support is provided to customers.
According to trade association UK Finance, a cumulative 2.75m mortgage payment deferrals were granted up until the end of 2020, with 1.8m in place at the peak in June 2020.
By late February 2021, there were 104,000 mortgage payment deferrals still in place, equating to 0.9 per cent of the total mortgage stock, compared with 17 per cent of the total mortgage stock at the peak in June 2020.
“Millions of people whose finances have been impacted by the pandemic have already received support from their lender through a mortgage payment deferral,” said Charles Roe, director of mortgages at UK Finance.
“The payment deferral scheme will be in place until July 31 to support customers through the continuing restrictions, with final applications due by March 31,” he added.
Rich Horner, head of individual protection at MetLife, said: “For over a year now home owners have been faced with ongoing financial uncertainty.”
“Not knowing what the future would hold and unsure of how best to plan for what has been an everchanging situation,” he added.
“Millions of people have, and continue to experience job uncertainty or a drop in income.”