Over two million people are considering taking a mortgage payment holiday to help cover the cost of living in the current financial crisis, new research has suggested.
Figures released by uSwitch.com show that this could result in total monthly repayments rising by £54 million.
Of these two million people, 729,054 have said they are considering postponing their payments due to redundancy fears, with the remaining figure stating they either have or are planning to freeze their payments to cover living costs.
Personal finance manager for uSwitch.com Louise Bond explained that while mortgage payment facilities can be a “great facility” for consumers, they should not be seen as a long-term solution for those struggling financially.
“A holiday will not make the underlying financial issues disappear … both the repayments and the debt will actually go up after the holiday,” she remarked.
Those considering a mortgage holiday as part of a debt management plan may wish to note Ms Bond’s comments.
Price comparison site moneysupermarket.com recently criticised new government proposals aiming to help those struggling with mortgage repayments, describing it as “virtually worthless”.
By Tom Musk