Eight in ten borrowers who took a mortgage payment holiday are now making full payments again, says UK Finance.

At its peak in June last year, 1.8 million borrowers had opted to defer payments. As of the end of December 2020, this had shrunk to around 130,000 – “broadly stable since late October,” according to UK Finance.

It adds that, with the economic health of the UK still uncertain and in the midst of further lockdowns, support for borrowers is still available and they should apply for any deferral or deferral extension needed by 31 March.

Alongside this, UK Finance points to the fact that mortgage lenders are in support of the FCA’s proposed extension to the moratorium on possessions to 1 April 2021, for which the deadline feedback passed earlier this week.

UK finance managing director of personal finance Eric Leenders says: “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.”