Although using holiday loans to pay for overseas property has been popular in the past, experts are urging caution in today’s market before jumping in. The housing crisis is well spread and many areas are deeply embroiled in this issue. For those thinking about getting a holiday loan for this purpose, experts encourage them to rethink their plans and make sure that they do all the research they can on risks before they go forward and file their application. This may be the case for many more months to come as the housing crisis continues and holiday loans become more scarce or consumers decide to start avoiding them in bigger numbers.
“Interest-only mortgages taken out offshore to purchase UK properties have been a well-used mechanism in the past,” explains Francesca Lagerberg, who heads Grant Thornton’s national tax office. “But since Budget Day in March, they are now treated as a remittance.”
The mortgage market picture may be just as bad here at home. “It would be premature to think that the housing market will now start to recover, because overall approval activity continues to be very low,” said David Dooks of the BBA.
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