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'No reason' why borrowers shouldn't take payment holidays
9 July 2008 10:30
There is 'no reason' why people should not take a payment holiday from their mortgage if their circumstances make this course of action necessary, one broker has claimed.
The Times reported last month that lenders Bradford & Bingley and Yorkshire Building Society, as well as charity Credit Action, had all noticed an increase in the number of borrowers either taking a break from their repayments or considering doing so.
According to Alexander Hall spokesperson Andy Pratt, it is absolutely fine for borrowers to take these holidays, which usually have a maximum span of six months, providing that it is permitted in the terms of their contract.
He said this was a perfectly valid option for homeowners to choose if they are going to be short of cash for a brief period, adding that some even use it as a seasonal activity, taking a break in January and February and then overpaying for the rest of the year.
Mr Pratt added that this was particularly popular with self-employed borrowers, citing the example of parents unable to do much work over the summer because their children are on holiday and who can hence take a break from their repayments during this spell.
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