|Lenders give 1.9m mortgage holidays –
Figures from UK Finance show that 1.9m mortgage payment holidays have been taken by borrowers in the last three months, equivalent to one in every six mortgages in Britain. On average, £755 is being deferred each month. In addition to mortgage holidays, UK Finance said banks have offered 962,000 credit card payment deferrals and 689,000 breaks to personal loan customers during the coronavirus pandemic.
|Lenders introduce raft of new borrowing restrictions –
The Times’ Kate Palmer reports on fresh hurdles for first-time buyers as lenders attempt to limit the number of risky borrowers on their books. Banks and building societies are declining mortgages to those with deposits gifted by family members, buyers with small deposits and those who have been furloughed or work in sectors at high risk of job cuts, for example. UK Finance says lenders fear the ability of borrowers to keep up repayments in the future and are factoring in a sharp fall in house prices next year. Palmer says landlords are also facing restrictions, with banks favouring properties with high efficiency ratings and limiting lending to portfolio landlords.