Borrowers with existing mortgage offers have been granted an additional three months to complete their home purchase at the agreed mortgage rate.
Meanwhile, more than 70,000 borrowers of Lloyds Banking Group, which includes Halifax, BM Solutions, Bank of Scotland and Scottish Widows Bank, have been granted a mortgage payment holiday of up to three months in just over a week.
Mortgage Solutions also understands customers in arrears will be allowed to take a payment holiday but they need to contact the bank to discuss their options.
Banks have been flooded with calls from anxious homeowners requesting the vital lifeline after chancellor Rishi Sunak’s announcement of the initiative on 17 March.
Borrowers facing financial difficulty because of coronavirus were told they could ask their bank for a three month payment holiday to give them breathing space.
Banks scrambled to put processes in place to support borrowers who did not think they could pay their mortgage.
Most banks now have online forms to process the requests after phone lines became jammed.
The the full base rate reduction will be passed on to borrowers of Lloyds Bank, Halifax and Bank of Scotland.