If you are intending on taking a nice holiday, you may be disheartened at the price it now costs. Prices for flights have increased due to an increase in fuel prices and a national newspaper has reported recently that some of the larger holiday retailers in the UK are now adding additional costs of up to forty pounds depending on the distance that you are travelling.
Research has been undertaken by various holiday firms in recent years that has shown that the average holiday price is now in the region of 2k-3k and this includes all costs such as flights, hotels, food and money for spending, so it’s no surprise that people are using remortgages as a way of affording it. And here’s why.
1. A single monthly repayment: When you take out a remortgage, not only can you borrow the additional funds in order to be able to afford your trip abroad, you can also consolidate your debts which means that you would have just a single repayment each month.
2. It’s so simple! Remortgages are very simple to arrange and you are spoilt for choice with a range of different contracts for choose from including various repayment methods and interest rates.
You don’t even have to deal with the paperwork (other than the application unless you employ a mortgage broker), as the lender deals with the paperwork for you.
3. Remortgages are widely accepted: If you have poor credit or a non-guaranteed income, for example if you are a freelancer, it is likely that unsecured lending may be declined by creditors whereas remortgage contracts are more likely to be accepted because the property is security for the loan.
Some lenders deal with the additional risk by charging higher interest on the mortgage loan, however as there is a property acting as security for the loan, it is possible to be able to borrow additional funds even with poor credit history so that you can go on your perfect trip.
4. Remortgages cost less: Loans and credit cards are higher risk because there is no security for the loan and no guarantee that the lender will get their money repaid.
For this reason, the lender is likely to offer a much lower interest rate on a remortgage than on a personal loan or credit card and so the monthly payments are far lower.
5. Repayment periods are longer: Because repayment periods are generally longer than those on a loan or credit card, you end up paying less interest and so monthly repayments are lower and that means you can afford to go on the holiday that you’ve been wanting for so long.
Marcus Selmon writes for Just Commercial Mortgages the UK’s No1 site for the latest commercial mortgage rates and commercial property finance news.
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