On 22 May the Financial Conduct Authority (FCA) published proposals to extend the availability of mortgage payment holidays by a further three months to 31 October. Consultation on the proposals will end on 26 May with final announcement expected soon after.
The importance of mortgage holidays can be seen in recent figures released by UK Finance, the finance lobby group. Their data showed that as at 20 May 1.82 million mortgage holidays had been granted – equivalent to about one in six mortgages. The average monthly payment deferred was £755, of which £260 represented deferred interest, according to UK Finance.