U.K. Banks Give 1.2 Million Home Loan Breaks Under Virus Program

(Bloomberg) --

More than one in ten mortgage borrowers in the U.K. have taken a payment holiday, less than a month after banks offered relief to those affected by the coronavirus pandemic.

About 1.2 million customers were granted a mortgage holiday between March 17 and April 8, according to lobby group U.K. Finance. Banks trebled the number of breaks they gave in the latest two weeks the data covers, granting 61,000 customers per day a break on their repayments.

“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,” said Stephen Jones, chief executive officer of U.K. Finance.

The pandemic, which has caused more than 10,000 deaths in the U.K, prompted a nationwide lockdown from March 23 that shuttered all but essential businesses. Mortgage providers have said customers can ask to postpone payments for as long as three months if they experience money issues as a result of the virus. Interest still accrues in the period.

For the average mortgage holder, the holiday amounts to £260 ($326) per month of suspended interest payments, U.K. Finance said.

©2020 Bloomberg L.P.