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There are many flexible mortgage plans offered by certain providers that allow you to take mortgage payment holidays. In most traditional mortgages your lender will allow you to take a mortgage holiday if you have made overpayments. If you have a good credit rating history you are more likely to be permitted to take a mortgage holiday.
There are however alternatives to taking a mortgage holiday:
- Organize and carry out a household budget to ensure there are no financial leaks
- To reduce the size of your monthly payments you can request to lengthen the term of your mortgage
- Another means of reducing your monthly payments is to request your lender to change your method of repayment from ‘remortgage’ to ‘interest only’. Yet, you may be expected to repay the entirety of your mortgage loan by the end of the term from a separate savings account.
The government has supported the notion that homeowners who are struggling to repay their mortgage loan should be allowed up to two years from paying their interest and mortgage payments.
Before assuming that your lender will let you take a payment holiday, you may need to read through the terms and conditions of your mortgage to see if this is an option offered by your provider.
We have listed a range of competitive mortgage deals in the comparison table above.