There were 130,000 mortgage payment deferrals in place at the end of December 2020, broadly stable since late October but down from a peak of 1.8m in June 2020, according to UK Finance. 

The firm says that industry analysis suggests eight in ten customers have now returned to making full mortgage repayments and that the banking and finance industry remains committed to supporting mortgage customers facing financial difficulties with new or extended payment deferrals and tailored support. 

UK Finance also says that customers should apply well before their February mortgage payment is due if they want to benefit from the full deferral period of up to six months. 

Eric Leenders, managing director of personal finance at UK Finance, said: “Millions of people whose finances have been impacted by the pandemic have already received support from their lender through a mortgage payment deferral. 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.”