Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions his Department has had with representatives of the banking sector on payment holidays for loans and mortgages.

My officials and I have regular discussions with lenders and industry trade bodies concerning payment holidays on loans and mortgages.

In response to the Covid-19 crisis, I set up the Consumer Finance Forum to discuss consumer finance issues with industry as the crisis evolved. The Forum has met several times since March to consider the full range of effects on consumer finances arising from the pandemic.

We understand this remains an uncertain time, and to reassure homeowners we have extended the period that borrowers can apply for up to 6 months of mortgage holidays until 31 March 2021. The FCA’s guidance from 17 November also confirms the lender ban on repossessions is in place until 31 January 2021, meaning no one will lose their home during this time.