Interest Only or Moratorium on your Mortgage??

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    Financial Companion

    In the current climate, many people have availed of various options to help get them through a difficult period regarding their mortgage. Some of the most common options availed of, are paying interest only for a period, or a moratorium (payment break).

    In some cases their lender may make them aware (but not always!) of the impact this will have on their mortgage protection policy. As basic reducing mortgage protection is calculated to reduce approximately in line with the reducing mortgage balance, any interruption of the scheduled reduction will distort this, leaving a shortfall in the amount covered. In these cases, it may be required to replace the reducing cover with a level term cover or in some cases, simply increase the reducing type of cover to allow for the difference.

    If you are unsure whether this affects your circumstances, please feel free to contact me for information. You can PM me, or email

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