As summer approaches and many consider taking out a holiday loan for their traditional August vacation, the newly higher rates may make consumers rethink their vacation plans. Right now, banks are making it increasingly difficult to get a holiday loan, particularly since these are seen as quite risky, and those that can get an approval on a holiday loan are finding that the rates are significantly higher. While they may be lower than credit card interest rates, the gap is definitely closing. Many are blaming the housing market for the lack of availability on holiday loans. Banks are looking to limit their risks in any way they can, and they are trying to make up their profits by charging higher rates on holiday loans and other loans. The result is definitely not good for consumers.“This is just another step in the complete about turn in the mortgage market from just a year ago,” stated Drew Wotherspoon the communications director at John Charcol. “Consumers have been king for many years now, with lenders fighting for their business, often at loss leading rates, but that has been consigned to history and these booking fees are another stark reminder of that.”
Related reading: Holiday Loans
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