Throughout the Covid-19 crisis, the UK's banking and finance sector has been working hard to support people's financial wellbeing. Since the launch of the payment deferral schemes, lenders have granted a total of two million mortgage payment deferrals, 1.05 million credit card payment deferrals and 707,000 personal loan payment deferrals, as well as applying over 27 million overdraft buffers to primary current accounts.

Initial industry data suggests that of those whose mortgage payment deferral has come to an end, over 70 per cent have resumed making full payments; however the industry recognises that some borrowers may continue to need financial support during these unprecedented times. The Financial Conduct Authority's (FCA) updated draft guidance provides helpful clarity for those who continue to be financially impacted, or who are newly affected, by the coronavirus pandemic. 

It will always be better for a customer who can afford to make payments towards their mortgage to do so, but help is available if this is difficult for any reason. The industry understands that a ?one size fits all? approach would not be appropriate, and lenders are prepared to offer tailored and immediate support to those who need it. Lenders will be communicating with customers about the options available as their payment deferral finishes and we would encourage customers to accept offers of further support if needed. This could include self-help and money guidance, as well as referring borrowers to debt advice if this better meets their needs and circumstances.  

The moratorium on possessions remains in place until 31 October to ensure customers do not lose their home at this difficult time. As the FCA has directed, normal credit reporting arrangements will resume following the end of temporary emergency measures to ensure lenders have an accurate picture of a borrower's financial circumstances and to reduce the risk of unaffordable lending. Borrowers who are concerned about their finances should get in touch with their lender to access the support that is available.  

As the UK continues to experience the impact of coronavirus, the industry will work closely with regulators and the government to ensure customers experiencing financial difficulty continue to receive the support best suited to their individual needs. 

Eric Leenders, Managing Director of Personal Finance at UK Finance, said:

The industry has provided unprecedented support to customers as part of its clear plan to get Britain through the coronavirus crisis. As we begin to arrive at a ?new normal?, a more tailored approach to customer support using a range of measures will likely be more suitable for those customers who continue to experience financial difficulties or find themselves newly affected by the ongoing crisis.  It is important for customers who are able to  resume their mortgage payments do so, however lenders are fully prepared to support any customers who  face difficulty and it is vital that those who are facing payment difficulties get in touch with their provider as soon as possible.