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Lenders have granted payment holidays on loans worth more than £250bn


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https://www.thisismoney.co.uk/money/markets/article-8490395/Banks-braced-10bn-hit-job-losses-shoot-up.html

Britain's biggest banks could face losses of up to £10billion as customers are weaned off loan payment holidays, research has found.

Lenders have granted payment holidays on loans worth more than £250billion, according to an analysis by Barclays.

Many of the three-month holidays will come to an end this month just as lob losses mount up.

Fears are rising of a wave of defaults as customers lose their incomes at the very moment they are asked to start making repayments on mortgages, personal loans and credit cards again.

The research found banks had agreed to halt payments on 17 per cent of mortgages, 8 per cent of personal loans and 2 per cent of credit cards. Lenders have also granted a break on interest charges for 27million overdrafts.

The study estimated that if a quarter of the customers on mortgage payment holidays default, this will lead to losses of £7.5billion. UK banks face losses of £217million on credit cards and £2.2billion on personal loans when payment breaks end. The total across the three main types of debt would be £9.9billion.

As the country's largest lender, Lloyds is the most exposed to the economic fallout. It faces estimated losses of £1.7billion, £137million, £242million and £165million on mortgages, credit cards, personal loans and motor finance respectively if a quarter of customers default.

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  • 417 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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