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The Government’s latest scheme to help those with mortgage problems cannot be seen as a payment holiday.

The Government will give guarantees on mortgage interest repayments for up to two years if the borrower has experienced a sudden and large reduction in earnings.

But many fear that this will be seen as a holiday, where you can carry on spending unsecured debt, while your mortgage is taken care of.

Louise Cuming, head of mortgages at moneysupermarket.com, says: "Homeowners need to be aware that the interest is deferred, not written off, and they will eventually have to repay it in full.”

Cuming says the scheme is just a “sticking plaster” to cover up the main problems in the UK mortgage market right now.

She says: “If the recession proves to be prolonged, bloody and painful, there is the danger that when the time comes to repay, they may end up losing some of the equity from their homes, which some borrowers will undoubtedly have worked hard to build up.”

If you are struggling to pay off your mortgage each month, it will not help to wait for Government aid. To solve financial problems long-term, you need to be pro-active. That means talking to an adviser and looking at what can be done so you can survive for more than two years.

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.