Notes to editor
1. UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms across the industry, we act to enhance competitiveness, support customers and facilitate innovation.
2. Figures relate to the total first charge mortgage market, grossed up from a representative sample up to 28 May 2020. The figures include both residential and buy-to-let mortgages, and may be subject to modest revision as firms identify double-counting and other anomalies in previous daily totals.
3. There are currently 10,970,000 outstanding first charge mortgages in place in the UK, meaning the mortgage payment holidays in place account for 17 per cent of total mortgages or slightly over one in six.
4. PRA statement provides further information on the application of regulatory capital and IFRS 9 requirements to payment holidays granted or extended to address the challenges of Covid-19.
5. The value of the average interest payment deferred each month (£260) and the average value of suspended payments per month (£755) is calculated using the average interest rate (2.37 per cent) on an average loan size (£132,128) in the UK. These figures are correct as of 31 December 2019.
6. More information on the measures introduced to support mortgage customers impacted by Covid-19 is available here. These measures include:
- A three-month moratorium on residential and buy-to-let possession action, giving customers reassurance that they will not have their homes repossessed at this difficult time.
- Offering payment holidays to all buy-to-let landlords whose tenants have lost income because of the impact of Covid-19, with landlords expected to pass on this relief to their tenants to ensure that they are supported during this time.
- Offering customers who have exchanged contracts for a house purchase the option to extend their mortgage offer for up to three months to enable them to move at a later date.
- For residential and buy-to-let customers that have already taken a payment holiday on their mortgage, it may be appropriate in some circumstances for this to be extended. The range of support available to customers unable to meet their normal repayments include reduced payments, a move to interest only payments for a period, extending the term of the mortgage to reduce payments, taking a payment holiday if the customer has not already done so or a further extension of the payment holiday, depending on the borrower’s circumstances. Where possible, borrowers will be able to explore their options online.
7. Possessions can still go ahead if the property is empty or the customers has requested the possession to continue.
8. In line with FCA guidance, customers will continue to be charged interest during the payment holiday unless their lender has told them otherwise.