The number of UK homeowners taking mortgage payment holidays has dropped significantly.
In June 2020, around 1.8 million lenders took the break from payments due to COVID financial difficulties, according to UK Finance - affecting one in six.
Now eight in 10 of those are now back to fully meeting their mortgage repayments, with just 130,000 holidays remaining in place by the end of December 2020.
Those still struggling with their finances as a result of the pandemic can still apply for a mortgage payment holiday - the scheme has been extended to the end of July 2021, though the deadline to apply is March 31.
Those wanting to take the maximum holiday of up to six months are being urged by UK Finance to apply before their February mortgage payment is due.
This will mean the payment holiday can run between February and July.
Those in financial difficulty are also being urged by the trade association to contact their lender before missing a payment.
Customers who have already benefited from a full six-month payment deferral, but are continuing to experience financial difficulty, should contact their lender to discuss tailored ongoing support.
UK Finance said it will always be in the long-term interest of customers who are able to do so to resume making payments, otherwise the size of their debts will continue to increase as interest is added.
Eric Leenders, managing director of personal finance at UK Finance, said: “With new lockdown restrictions in place, the banking and finance industry is continuing to help customers through these challenging times, including by providing tailored support appropriate to their needs.
“It will always be in the long-term interest of borrowers to resume making payments if they are able to do so.
“However, for anyone who is still struggling ongoing support will be available, and so we would urge customers to contact their lender to discuss their options before missing a payment.”
