More payment holidays for struggling consumers
The number of ‘payment holidays’ offered by financial institutions has increased, according to new research.
Payment holidays allow homeowners to have a break from their mortgage repayments for an agreed length of time and are normally offered to customers who have regularly met their schedules.
Research from MoneyExpert.com found that the number of products offering payment holidays has risen from 409 to 629, which accounts to a five per cent rise. Sean Gardner, chief executive of MoneyExpert.com, commented: “Things are tighter than they used to be. But homeowners who are still looking for good deals may be attracted by the prospect of taking a payment holiday to ease the financial burden if things get tough or if their circumstances change.”
He added that a payment holiday should not be the main reason for one’s initial choice of mortgage, especially as a holiday from paying monthly “doesn’t mean a holiday from paying interest”.
Consumers struggling with their monthly repayments might wish to examine debt management options available to them.
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