Borrowers could take payment holiday

Posted: 28 Apr 2008 11:21:18 GMT

Homeowners are being urged to check the terms of their mortgages to see if they are entitled to a repayment break.

Homeowners are being urged to check the terms of their mortgages to see if they are entitled to a repayment break.

That is according to Money Expert, which said that 58 per cent of available mortgages come with such an option.

In fact, the firm claims that it is a growing trend. In September 2006, only 44.5 per cent of fixed and discounted mortgages included payment holidays, while this has increased to 53 per cent now.

Including variable-rate mortgages, the figure rises further to 58 per cent.

"Lenders are aware they need to be flexible with their customers and are already ahead of the game - certainly more than the chancellor might have us believe," said Money Expert's Sean Gardner.

"With around six in ten mortgage products coming with a potential payment holiday written into the terms and conditions, cash-strapped homeowners can at least enquire about taking a break," he added.

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