Find out if a mortgage payment holiday is right for you
Last month, the chancellor Rishi Sunak announced mortgage lenders would provide customers with three months of payment holidays to help those financially hit by the coronavirus pandemic.
However, the holidays only give people a break from paying their mortgage, the debt is not written off. Lenders will add anything unpaid to the mortgage total, which means repayments will go up once the holiday is finished.
Mark Gracey, corporate development director at MoneySuperMarket, said: “It can be difficult to understand exactly what a mortgage holiday could mean further down the line once the term comes to an end.
“With mortgage providers wanting to keep their phone lines open for their most vulnerable customers, we hope that this tool will help people understand whether a mortgage payment holiday is for them if they can’t get through to their provider.”
Users are asked to fill in a number of details such as current monthly repayments, interest rates, and length of the mortgage, and are shown the increase to monthly repayments they should expect to see. The calculator then takes customers directly to their lenders’ mortgage repayment holiday information to begin an application process should they wish to go ahead.
The calculator is available on the MoneySuperMarket website.