Mortgage holidays 'do not affect credit rating'

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Taking a mortgage holiday would not affect a borrower's credit rating if such a move was in their contract, according to an expert.

Andy Pratt, spokesperson for advisory firm Alexander Hall, said that as long as the measure is featured in the terms of an agreement, it is "perfect alright" for homeowners to use it.

He then went on to explain which type of borrowers may particularly benefit from taking up the options.

"There are some clients who use it as a seasonal activity really, and they have a holiday in January or February and then during the other months when things are busy they overpay," he said.

"Usually you see this in cases when people are self-employed."

Mr Pratt added that those who take time off to care for children in school holidays may also benefit from such a move.

It was recently reported in the Times that lenders are seeing an increase in the number of consumers choosing to take a mortgage holiday.

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