The industry body said there were 130,000 mortgage payment deferrals in place at the end of December 2020 which meant one in 84 mortgages were subject to the freeze at the end of last year.

Back in June 2020 one in six mortgages – or 1.8 million – had payment deferrals in place. This plummeted at the end of November to 127,000.

The latest figures revealing 130,000 mortgages were subject to mortgage holidays at the end of December was described by UK Finance as being ‘broadly stable’ since late October.

However, it comes after the Financial Conduct Authority (FCA) put in place measures to allow borrowers facing financial difficulty to continue with, or take out, a deferral if they had not already benefited from a mortgage holiday for a full six months.

Indeed, UK Finance said customers wishing to defer payments should apply well before their February mortgage payment was due in order to benefit from the full deferral period of up to six months.

Eric Leenders, managing director of personal finance at UK Finance, said: “Millions of people whose finances have been impacted by the pandemic have already received support from their lender through a mortgage payment deferral.

“With new lockdown restrictions in place, the banking and finance industry is continuing to help customers through these challenging times, including by providing tailored support appropriate to their needs.

“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.”