28
Apr
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.
