The latest (Q2 21) Mortgage Arrears Possessions Update from UK Finance has revealed that arrears are moving on twin tracks; with Covid-19 related support helping customers to remain out of arrears but those in pre-pandemic financial difficulty continuing to build up arrears.
In the year to the end of March 2021, lenders offered payment deferrals of up to six months to customers and buy-to-let landlords where Covid-19 had impacted their ability to meet their monthly mortgage payments, with a total of 2.9m deferrals granted while the scheme was active.
Commenting on the data, Eric Leenders, MD of personal finance at UK Finance, said: “The mortgage payment deferral scheme continued to help customers throughout Q2 2021, resulting in a decline in early arrears on the previous quarter and lower levels than before the pandemic began.
“The scheme has now come to an end and the majority of customers who used it have now returned to making regular payments. There is ongoing support for anyone who is still struggling, including tailored assistance and any customer who is concerned about their finances should contact their lender early to discuss the options and tailored support available to them.”