Apologies for late reply, meant to reply to this post a couople of days ago
I think Maxsteam is confusing the issue slightly here.
Max is thinking of the overpament/underpayment system where the lender will let you reduce your payments if you have overpaid by an amount already. If you have overpaid £1000 on your mortgage then they will let you make underpayments on your mortgage to the value of £1000.
A payment holiday is an agreement to totally miss up to 3** months (**check what your lender will allow) mortgage payments by prior arrangement with the lender. This means that you will not need to make any payment what so ever during this period but as Maxsteam has rightly said, "Everything has a cost"
The cost element to this is that the interest that you would normally have paid in this period will be capitalised and added to your mortgage balance so if you would normally pay say £650 per month on your mortgage and if we say that £333 of this payment was interest the lender would normally charge and if you were to take a 3 month holiday then the lender would capitalise this figure: 3 months x £333 = £999 and add this amount to your loan balance which you would then pay interest on for the remaining loan term...in effect you have missed 3 mortgage payments but you have added £999 to your mortgage balance.
I would not suggest this as a suitable method for paying off another debt.
Check with your lender before making any decisions an refer to your mortgage offer for details of what the lender may allow