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.

This is because mortgages have the property as security so there is less risk for the lender to take on. Many lenders give a higher interest rate if you are a higher risk (e.g. if you are a contractor or have CCJs and so on) but you can generally still get a remortgage and borrow more money for your holiday plans.

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.

Because of this lower risk category that remortgages are in, lenders are able to offer lower interest rates which in turn lowers your monthly mortgage repayments to the lender.

5. Longer repayment periods: The longer repayment period means that the repayments are stretched out and so there is less to repay each month so you’ll have more money for the things you want like that luxury holiday!

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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