Why It Currently Makes Sense To Fund Your Dream Holiday With A Remortgage
http://www.realestatediaries.net/articles/15017/1/Why-It-Currently-Makes-Sense-To-Fund-Your-Dream-Holiday-With-A-Remortgage/Page1.html
Marcus Selmon
Marcus Selmon writes for Just Commercial Mortgages.com the UK's No.1 site for the latest commercial mortgage rates and commercial property finance news. By Marcus Selmon
Published on 02/1/2012
Various holiday companies conducted research two years ago which indicated that the average price of a holiday abroad had increased to almost GBP3,000 when including the costs of all spending. So many people are now looking to remortgage to pay such high costs and we've put together five reasons why this is a good idea.
Are you thinking about a luxury holiday but just can't figure out how to pay for it? Holiday costs have gone up and up in recent years, but getting a remortgage could allow you to borrow that extra bit of money that means that you can have the holiday that you've wanted and deserved for so long.
Various holiday companies conducted research two years ago which indicated that the average price of a holiday abroad had increased to almost GBP3,000 when including the costs of all spending. So many people are now looking to remortgage to pay such high costs and we've put together five reasons why this is a good idea.
1. One repayment each month: Remortgaging means you'll be swapping your existing mortgage for a new one, potentially with a lower interest rate and you can also borrow extra money for your holiday. This means you'll have a single monthly repayment to one mortgage lender and that's it! This would not be the case if you'd borrowed with an expensive personal loan!
2. Remortgages are very simple: Getting a remortgage is generally very quick and easy to arrange and you simply need to give your financial information to your new lender to apply as you did when you first got your mortgage.
The lender and your financial adviser will do the majority of the paperwork for you. You will just need to get financial documents together like bank statements and payslips for proof of income.
3. Remortgages are often more accepted: Credit cards and unsecured loans are high risk to creditors because there is no guarantee that they'll be paid back for the money that is borrowed from them. Remortgages on the other hand are lower risk.
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. A remortgage is less expensive: Due to the high risk of unsecured lending as we just mentioned, unsecured lending often carries very high interest rates for the convenience.
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.
Various holiday companies conducted research two years ago which indicated that the average price of a holiday abroad had increased to almost GBP3,000 when including the costs of all spending. So many people are now looking to remortgage to pay such high costs and we've put together five reasons why this is a good idea.
1. One repayment each month: Remortgaging means you'll be swapping your existing mortgage for a new one, potentially with a lower interest rate and you can also borrow extra money for your holiday. This means you'll have a single monthly repayment to one mortgage lender and that's it! This would not be the case if you'd borrowed with an expensive personal loan!
2. Remortgages are very simple: Getting a remortgage is generally very quick and easy to arrange and you simply need to give your financial information to your new lender to apply as you did when you first got your mortgage.
The lender and your financial adviser will do the majority of the paperwork for you. You will just need to get financial documents together like bank statements and payslips for proof of income.
3. Remortgages are often more accepted: Credit cards and unsecured loans are high risk to creditors because there is no guarantee that they'll be paid back for the money that is borrowed from them. Remortgages on the other hand are lower risk.
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. A remortgage is less expensive: Due to the high risk of unsecured lending as we just mentioned, unsecured lending often carries very high interest rates for the convenience.
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.