Lenders are “ready and able” to offer help to borrowers affected by the Coronavirus outbreak, UK Finance has pledged.

The trade body says this may come in the form of repayment relief to customers whose earnings have been hit or costs increased as a result of contracting the virus or  because of the measures imposed to stop it spreading.

It comes after a number of lenders including TSB, Natwest and Saffron Building Society offered payment holidays to borrowers who had been severely affected by recent flooding.

Home owners may face financial hardship if they have self-isolated to help prevent the spread of the virus.

The government has announced that workers will now be able to get statutory sick pay from the first day of self-isolation, but self-employed workers and those in the gig economy will not have this financial cushion.

The TUC says more than two million workers do not earn enough to qualify for SSP.

Up to a fifth of the population could be off work in the peak of an epidemic, officials believe.

UK Finance chief executive Stephen Jones says: “Banks, building societies and credit card providers understand that some of their customers may be worried about the effect that contracting the Coronavirus (COVID-19) could have on their finances, for example due to a drop in income or because of unexpected expenses or bills to pay.  

“All providers are ready and able to offer support to their customers who are impacted directly or indirectly by COVID-19, which could include offering or increasing an overdraft or allowing repayment relief for loan or mortgage repayments: asking for help early is key.

“We would encourage customers who think they may be affected to contact their provider as soon as possible to discuss the support available to them.

Jones says banks also recognise the impact that the outbreak may have on the cashflow of small businesses and are “are committed to supporting viable businesses in continuing to trade while they implement their contingency plans”.

He urges business owners to contact lenders early if they need support.