Payment holidays a useful feature of mortgages, says expert
Homeowners are being urged to check the small print of their mortgages to see if they are entitled to take a break from their payments.
According to MoneyExpert, 58 per cent of the 2,058 fixed, discounted and variable products on the mortgage market feature a useful payment holiday facility.
The price comparison site said that lenders are increasingly aware of the need to be flexible at a time when borrowers are worried about money and the cost of lending.
But MoneyExpert spokesman Sean Gardner warned that just because there is a mortgage holiday facility, it "doesn't mean your bank will let you off repayments easily".
He added: "It's worth remembering that a break from paying monthly doesn't mean a break from paying interest - that'll continue to roll onto your debt until you repay it in full."
According to the Financial Times, if house prices fall 15 per cent, one in 20 mortgage holders would be in negative equity.
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