Almost 1.5 million consumers have been granted payment holidays by lenders on their personal loans and credit cards since the start of the pandemic.
According to new data from UK Finance, members of the industry body had granted 608,000 payment holidays on personal loans by 21 May, while 877,800 customers have been approved for a payment freeze on their credit card.
Lenders have also offered 27 million customers three months of interest-free borrowing on the first £500 of their arranged overdrafts, and 1.8 million mortgage holders have been given payment holidays. This means that more than 30 million customers have benefitted from some form of lender leniency since the Covid-19 pandemic began.
“The banking and finance industry has put a clear plan in place to help Britain through these tough times,” said Stephen Jones, chief executive of UK Finance.
“Lenders have now put in place support across over 30 million customer accounts, from the option of interest-free overdrafts to payment holidays for credit cards, personal loans and mortgages.
“Banks and building societies will continue to help their customers get through the crisis and have a wide range of support available. Anyone with concerns about their financial situation should check with their lender to discuss which form of support would be the best choice for them.”