At its peak in June the number of people taking so-called payment holidays was at 1.8 million.

As of early October UK Finance said the estimated number of deferrals in place had fallen below 200,000. Indeed, industry analysis suggested 89% of customers whose payment holidays had ended had returned to making repayments.

But figures out today revealed the latest estimate, as of 20 November, was that 127,000 customers remained on mortgage holidays.

It comes just after the FCA released guidance urging lenders to offer ‘tailored’ support to borrowers in financial difficulty because of Covid-19, which could include extended deferrals for those who had not yet taken six-months’ payment holiday.

As such it extended the mortgage payment deferral scheme until 31 July 2021 meaning customers have until 31 March to apply for, or extend, a payment deferral, up to a maximum deferral period of six months. Mortgage holders who have not yet sought support through the scheme are encouraged to apply well before their February 2021 mortgage payment is due.

Eric Leenders, managing director of personal finance at UK Finance, said:  “The banking and finance industry remains committed to helping customers get through these challenging times.

“Millions of people struggling with Covid-related income shocks have been supported through payment deferrals, and lenders will ensure customers continue to receive the help they need.

“It will always be in the long-term interest of borrowers who are able to do so to resume making payments, but for anyone who is still struggling ongoing tailored support will be available. The industry stands ready to provide assistance to those in need.”