Wednesday, December 10, 2008
Study identifies mortgage holiday proposals as “political manoeuvre”
The government’s 2-year mortgage holiday could leave cash strapped consumers in a worse financial situation, mortgage services provider Exact warns today. The firm has done a study of the government’s plan to defer mortgage interest payments for two years and has slammed it as badly thought out and little more than political spin. With property prices nose-diving it says that deferring mortgage interest payments could mean that cash strapped borrowers just run up more debt against a property that is rapidly losing capital value.