Lenders 'increasingly' offering payment holidays

14-Mar-2007

In news which may be of interest to prospective first time buyers, Britain's mortgage lenders are increasingly offering payment holidays, new research suggests.

According to data by MoneyExpert, over the last six months, the number of products offering a payment holiday facility has increased by 220 to 629, which may be of interest to would-be first time buyers concerned over the cost of mortgage repayments.

"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," said Sean Gardner, chief executive at MoneyExpert.

Payment holidays allow borrowers to suspend mortgage payments for an agreed period and are usually taken for a number of reasons, including when borrowers change jobs, become unemployed or decide to start a family.

MoneyExpert offers comparisons on a range of products and services including credit cards and insurance products.

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