More than 1 million UK businesses supported under COVID-19 lending schemes

Stephen Pegge (pictured), managing director of commercial finance at UK Finance, said: “These figures shine a light on the unprecedented levels of support from lenders to help get businesses through these challenging times.

“The fact that over one million businesses are receiving support through the coronavirus loan schemes is a credit to bank staff up and down the country who have worked tirelessly to get finance to those who need it.

“Almost £43 billion has now been approved through these schemes, in addition to the industry’s broad package of support for businesses including overdraft extensions and capital repayment holidays.”

He also urged business leaders to remember that lending provided under government-backed schemes is a debt not a grant, and to consider their ability to repay before applying.

Latest government data also shows that mortgage approvals in Britain fell to the lowest level on record due to the lockdown, down from 15,800 in April to 9,273 in May.

Demand is 90% lower than February and 70% below the weakest month during the 2008 financial crisis.

Research has shown that consumers are avoiding borrowing and hoarding cash, as they plan for tough economic times ahead.