Mortgages Uncovered

Many people don’t even realise that their mortgage includes an allowance for a mortgage payment holiday, although some lenders will remind you once you are eligible for one.

What it means is that for a set amount of time you don’t have to pay your mortgage payment.  Now that sounds great, however, there are benefits for the mortgage lender too because whilst you are not paying your mortgage the interest is still applied.

Even if you think you may not use it, the flexibility is handy.

Generally speaking (and it will vary according to your lender), you can take something like one month’s payment holiday for each year that you have paid your mortgage, up to a maximum number of months holiday.

It is estimated that approximately 58 percent of the fixed, variable and discounted mortgage deals that are currently on the market include a facility for a mortgage payment holiday.