One of the measures designed to help ease financial pressure during the COVID-19 pandemic is mortgage holidays being offered by banks.
It pays to check the detail on these to see if the interest on your mortgage accrues or is written off. If the interest accrues then it is added to your loan and you will find the balance increases. With how mortgages work, this could potentially add years to your total repayment period and thousands to the total overall cost of the mortgage, so check the detail before taking up the offer.
To avoid this, if at all possible, arrange to pay the interest on the mortgage during this period. This way the loan balance will stay the same. That being said, if cash is very tight, a complete mortgage holiday will be a great help. Just be fully informed to what you’re getting in to.
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