For those seeking a break on their mortgage payments, the offer of a holiday loan payment arrangement is often too good to pass up. This holiday loan break allows consumers to skip a payment and have it tacked on to the back of a loan. However, many consumers may not be aware of the dangers that are inherent when they accept a holiday loan payment arrangement. The main concern appears to be how long it will take to pay back the loan after the holiday loan payment is used.Sean Gardner from the financial-comparison site MoneyExpert.com says “that 50 per cent of mortgage products offered this option last year – now it’s 58 per cent.” He warned “that payment holidays do carry some baggage in that you’re in effect extending your mortgage, as any missed payments are added on to the original loan.”"People don’t realise this can prove more expensive in the long run,” says spokesman Tom Wilson. “TV adverts talk about taking a mortgage break to go travelling, but people forget they’ve got to pay this money back plus interest.”But the Financial Services Authority, the City watchdog, has a different view. “We don’t dictate criteria to lenders for allowing mortgage breaks,” explains FSA spokesman Adam Richards-Gray.
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