28 Apr

Homeowners 'could consider' mortgage payment holidays

Homeowners 'could consider' mortgage payment holidays

As living costs continue to rise, financial comparison website MoneyExpert.com is urging homeowners to check the terms of their mortgage to see if they are eligible for a payment holiday.

It found that 58 per cent of the 2,058 fixed, discounted and variable mortgage products on the market include some form of payment holiday facility, while the proportion of mortgages offering such a feature is increasing.

Payments holidays allow homeowners to stop their mortgage repayments for an agreed period of time, although they continue to accrue interest.

Sean Gardner, chief executive of the website, noted that lenders are aware of the need to give their customers more flexibility in order to help them weather the credit crunch.

"Homeowners looking for competitive mortgage deals in the new tougher mortgage marketplace might be attracted by the prospect of taking a payment holiday to ease the financial burden if things get tough," he added.

At a recent summit between chancellor Alistair Darling, housing minister Caroline Flint and the Council of Mortgage Lenders, the chancellor called on mortgage providers to do more to help homeowners struggling with repayments.

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