Some borrowers may be entitled to mortgage holidays
May 19, 2008
According to some industry officials many homeowners may find that they are actually entitled to take mortgage repayments holidays as part of their mortgage loan contract, which could help out many homeowners from time to time when they are struggling to meet the repayments on their mortgage.
These mortgage repayments holidays are something that the Chancellor, Alistair Darling, has been looking at to try and ease the financial strains facing homeowners, but it seems that many people may already be entitled to take these repayment breaks.
Officials from MoneyExpert.com claim that around 58% of homeowners could find that they are entitled to these mortgage repayment breaks, although many may not realise that this is the case. Homeowners are therefore being urged to check their mortgage loan contract to see whether this facility is included.
This means that homeowners who find themselves unable to meet their repayment one month can take an official break rather than falling into arrears or turning to more expensive forms of finance such as heir credit card to pay that month’s instalment.
It is estimated that around 50% of over 2000 fixed, variable, and discounted rate mortgages offer a repayment break facility. One official from MoneyExpert.com said: “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.”
However, he did add: “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.”
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