The cost of a three-month mortgage holiday could add up to £655 to a mortgage loan says Money.co.uk

It says that while just £11.21 per month is added to a mortgage payment on average, this quickly builds up, and that with the maximum holiday length now being six months, which many in the industry have voiced caution over, borrowers could face an additional cost of £1,330.

This calculation is based on the mortgage borrower paying an interest rate of 2.72 per cent, which the website took from the average monthly payment, balance and term seen through its mortgage payment holiday tool.

The average borrower has £136,000 outstanding and 21 years left to pay it off, Money.co.uk specifies. And crucially, in most cases, the end date for a mortgage isn’t extended when a payment holiday is taken, meaning that more debt is squeezed into the same timeframe.

While welcoming mortgage holidays a lifeline for “millions of homeowners”, Money.co.uk personal finance expert Salman Haqqi says that, “payment holidays should be a short-term fix.

“It’s important to remember that you will still owe the money and interest will continue to accrue while the deferred payments remain unpaid.

“As the nation gradually starts to open for business and furloughed workers are brought back, restarting mortgage payments should be a priority. And, if you are still able to make your payments in full, you should continue to do so,” he concludes.