Koodoo: 77.1% of mortgage payment holiday users expect income to be fully restored by end of holiday
More than three-quarters (77.1%) of those borrowers taking advantage of mortgage payment holidays expect to have their income fully restored by the end of their payment holiday, according to data released by digital platform Koodoo.
The data was gathered via Koodoo’s mortgage payment holiday calculator; customers were asked about their anticipated household financial position once the payment holiday ends, and their reasons for taking one.
Almost a fifth (18.7%) said that they expected their income to be partially restored by the end, while 4.2% did not think it would be restored at all.
Just under two-thirds (63%) had taken a payment holiday due to reduced income, while 29.1% were doing so as a precaution against potential income loss.
Only 7.9% were taking a mortgage holiday due to complete loss of income.
Seb McDermott, co-founder and CEO of Koodoo, said: “We have been working with our lender partners over the last two months to develop digital solutions supporting customers through mortgage payment holidays.
“One of the key challenges has been understanding the motivations for taking payment holiday and the current financial health of borrowers.
“The data we have gathered suggests that most customers will see their income restored but it is vital that we develop tailored solutions based on individual borrowers’ needs and that any government guidance takes that into account to ensure those at risk get the right support.”