Are you eligible for a mortgage repayment holiday?

According to a recent report many homeowners with mortgages could be eligible for a mortgage repayment holiday, but may not be aware of this fact. With household finances strained, and with access to finance limited, many people have been struggling to keep up with their mortgage repayments.

Many have even turned to loans and credit cards in order to get the money to pay their mortgage and avoid the risk of getting repossessed. However, for many homeowners there could be a far simpler solution available.

Industry officials claim that around 58% of homeowners could be eligible to take a payment holiday from their mortgage repayments, and are urging homeowners to check the small print on their mortgage documentation to see whether they could take a break from their repayments in order to give them a chance to sort out their finances without getting themselves even deeper into debt by making the repayment by credit card or by taking out a loan.

One industry official stated: “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. With around six in 10 mortgage products coming with a potential payment holiday written into the terms and conditions, cash-strapped home owners can at least enquire about taking a break.”

He added: “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.”