Homeowners fear a mortgage holiday could impact their credit score
Nearly two-thirds of homeowners fear a mortgage holiday could hurt their credit score, according to new research. A survey of UK homeowners found that 73% are worried that a mortgage holiday will impact their credit rating, with 10% believing it will “definitely” have a negative effect on their score. Mortgage holidays have helped to relieve one of the biggest fiscal outgoings for homeowners during the pandemic. However, the mortgage break will have to be repaid eventually, either through an increase in monthly payments or the length of the loan's term. Experts at mortgage broker Hayto, which conducted the survey of 2,012 UK adults, said taking a mortgage holiday during the pandemic should not affect credit scores.