Payment holiday 'can ease strain on mortgage borrowers'

Many consumers in Britain may be able to take a break from their mortgage repayments, in order to ease the financial strain of the turbulent economic climate.

That is according to MoneyExpert.com, an independent financial comparison website, which noted that the "payment holiday" facility is now offered by around 58.5 per cent of products, including variable mortgages.

Sean Gardner, chief executive of the site, said that while this offered mortgage customers greater flexibility, it was not guaranteed that they would be granted a break by their lender.

He commented: "Taking a payment holiday will need to be agreed with your lender and just because there's a facility for it doesn't mean your bank will let you off repayments easily.

"In fact while lenders are struggling your argument will need to be watertight - but banks would rather know you're under the cosh now and intend to do something than wait until you're defaulting because you can't afford the repayments."

Mortgages News posted on 29/04/2008 09:19:19