Lloyd’s TSB announced a new mortgage this week that allows families to take advantage of a holiday loan and get away from it all. While many banks are cutting back on their unsecured loans, several are stepping into the market in hopes of taking advantage of the opportunities. The company stated that consumers with a holiday loan can be used to start amassing air miles that will give them enough to make several trips to popular destinations.”Alternatively, a family of four could enjoy all of the following activities: a day out at Newmarket races, a tour of the Manchester United stadium, a dolphin-watching session and a day at Legoland - and there would still be enough left for mum and dad to enjoy return flights to Paris,” a spokeswoman for Lloyd’s TSB stated.David Hollingworth at broker firm London & Country says: “Usually with these things, you approach them with caution. You are waiting for the downside - not a very good rate or an exorbitant fee.” But in this case, he adds, the rate is pretty competitive, if not the very best. HSBC has a three-year fix at 5.53% with a £999 fee and a 10% minimum deposit requirement (there may be lower rates for some existing HSBC customers).
Related reading: Holiday Loans
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