Two million homeowners ‘considering mortgage holiday’

19 December 2008

A new survey has suggested that two million British homeowners are considering taking a mortgage payment holiday to help fight off the effects of the recession.

The research, carried out by Uswitch.com, also suggested that 12% of households with a mortgage wrongly believed that the interest would be frozen during a payment holiday, while 6% believed it to be completely free.

The comparison site also warned that a 12-month payment holiday could add around £10,000 onto a £150,000 mortgage, with monthly mortgage payments after the holiday increasing by £80 as a result.

A mortgage expert for Think Money said: “A mortgage payment holiday can be a lifeline for homeowners who are struggling to meet their commitments, but as the research states, it can also add a significant amount to mortgage repayments in the long run.

“We advise anyone considering a mortgage holiday to seek expert debt advice beforehand and consider all options before making a decision.”

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Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage, contact one of our expert mortgage advisers today.

Tags: mortgage, mortgages, mortgage payments, mortgage holiday, holiday

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