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People considering taking a mortgage payment holiday in order to free up cash to cover a project may wish to heed the advice of one sector commentator.

According to David Kuo, head of personal finances at Fool.co.uk, deferring mortgage payments will result in Britons having to foot a higher interest bill further down the line.

Individuals may therefore wish to take out a loan to cover the costs of ventures such as a home extension, while secured loans could come with a lower annual payment rate than other ones available.

More than 800,000 consumers who have already taken a payment break will find themselves with a total interest increase of £2.8 billion, uSwitch.com found.

Commenting on the website's findings, Mr Kuo states that people taking a mortgage holiday will "end up with a bigger interest bill at the end of the period which will be added on to your loan so you'll end up paying for it eventually".

As such, taking out a smaller personal loan may be a better route for those looking to undergo some new year home improvements or to replace their car.