Although the trend towards remortgaging a house to get a holiday loan has been popular, experts warn that this may backfire, now that home values have fallen. This year many have decided not to get a holiday loan and for now, that may be the best strategy.
“Before the credit crunch and dramatic fall in house prices many people would have relied on remortgaging as a way of raising cash to fund their lifestyle, but those days are long gone and unlikely to return,” says Andrew Hagger of MoneyNet. “For those who have no savings, no prospect of extending their mortgage and no-one they can approach to lend them money, there really isn’t anywhere left to go.
“Admitting defeat on such a sensitive subject as money can be very difficult, but there’s no honour in going down with a sinking ship. Facing up to financial problems as early as possible is the only way of stopping things from deteriorating. Money is one of the biggest sources of arguments between couples so racking up interest on loans and credit cards in secret is a sure way of compounding the problem with relationship difficulties too.”
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