The mortgage payment holiday scheme for homeowners during the coronavirus pandemic has been extended for another three months.
The UK Treasury said more than 1.8 million mortgage payment holidays had been taken up since the scheme was launched in March. Homeowners struggling financially can also choose to make reduced payments.
The scheme had been due to end in June but will now run until 31 October.
John Glen, economic secretary to the Treasury, said: "Everyone's circumstances will be different, so when homeowners can pay some or all of their mortgage, they should work with their lender on a plan; but if they are still struggling, I want them to know that help is there."
In a separate statement, the Financial Conduct Authority clarified how banks should treat the payment deferrals for accounting purposes, saying they should not automatically assume those using the scheme would default on payments.
Banks could instead use their judgement about whether those using the scheme were likely to be able to resume payments before marking loans as past due under accounting rules known as IFRS9.
The authorities said they were extending the application period for a payment holiday for people who had not yet applied for the scheme but might need to. They extended to a ban on repossession of homes by lenders until the same date.
