Big rise in mortgage holidays

According to uswitch.com seven per cent of mortgage holders have already taken a payment holiday, and a further two per cent are in the process of applying because of fears they made be made redundant. Analysts believe that the cost of taking such a holiday is underestimated by mortgage holders, millions of whom think interest charges are frozen during the break. However, following a 12-month holiday, a £150,000 mortgage would increase by more than £10,000 and monthly repayments will go up by £80, meaning that those customers will low equity levels in their homes could find themselves struggling.