Say you had a nice house, small morgage, but wanted to take a once in a lifetime trip that perhaps costs about 5k maybe less maybe 3k, would you consider remortgaging

[LardLizard]

Only strictly as a one off thing ?

[Pibplob]

Yes! So long as it wasn’t a huge amount of money and I could afford to make the repayments I certainly would! Life is for living and enjoying. Go for it.

[IStillMissBlockbuster]

No just save

[NoSquirrels]

Can’t you save it up? That’s a tiny anoung to remortgage for and you’ll pay LOADS more interest in the long run.

If I needed to go NOW and couldn’t save, I’d put it on a 0% credit card and pay off over 24 months or whatever the longest term possible. Or an unsecured loan. I wouldn’t faff with the mortgage.

[flossietoot]

No way. I would save up or unsecured loan. Maybe try Credit Union

[Disfordarkchocolate]

I'd just save. Holidays on credit are never a good idea. How about a 0% credit card?

[LardLizard]

No if I did this, I’d then over pay to compensate
Other wise the amount paid back would be at least double

It’s a certain time related thing that you can’t really do in say x years when you’ve saved

[NonaGrey]

No.

[lynmilne65]

I did that but with a loan !

[LeeCee]

Do it. You only live once. You can pay it back. Do it

[WidoWanky]

No. You would be paying for that holiday for the life of the mortgage.

Save up.

[PeridotCricket]

I’d do it with an unsecured loan instead...

[NoSquirrels]

0% credit card, OP.

Moneysavingexpert has a guide and a tool to say if you’re “likely to be approved”.

Won’t there be admin fees etc on remortgaging?

[CurlyhairedAssassin]

No way. Unless there was a reason to go away urgently eg one of you was terminally ill then why can’t you just save up the money and go when you have it?

It’s such a small amount of money, would lenders even consider a remortgage for that amount?? That’s more like a standard loan amount. Or can’t you put it on 0% credit card and pay off a bit each month then switch to a different 0% card when the 0% term has finished on first one?

Interest rates are going up, why would you want to add it to your mortgage? A mortgage lender might actually be concerned that your income isn’t enough that you can’t raise that amount through the usual means that everyone else does. I don’t know as not a mortgage lender but it woukd worry me that you woukd want to do it that way.

[WidoWanky]

Just to add, i know someone who did this - several times. Bought a house 30 years ago for 40k. He currently has an outstanding mortgage of 120k.

[PattiStanger]

No way for such a relatively small amount, that doesn't make financial sense at all.

Is there no other way you can borrow the money?

[FrederickCreeding]

No, you'll pay too much in interest. 0% credit card much better. For ages I didn't understand how they work. But they honesty do give you a couple of years to pay back the amount and as long as you pay the minimum amount every month you won't pay any interest at all.

[LardLizard]

Widowanky that’s insane !!

[hobblesma]

Absolutely not.

[CurlyhairedAssassin]

Sorry the more I think about it the more I think it’s a terrible idea. 0% credit card fine. Faffing with mortgage- very silly.

We had a “further” advance on our mortgage when we had an extension. They quizzed us a lot about what it was for. It was improving our house and adding value but I’m not sure they’d agree to doing that for a holiday!

[CurlyhairedAssassin]

Widow: yes that would be my worry. If a lender DID approve it, woukd there be the temptation to do it again another time despite what you promise yourself, OP?

It’s a slippery slope...

[slithytove]

Yes definitely

[KnotsInMay]

Borrow by other means. And then set up a strict repayment plan. If you can borrow £5k on 0%, or anything below your mortgage rate, spend £3k on your holiday and put £2k as an overpayment on your mortgage!

[kaytee87]

I wouldn't take equity out of my house for anything except to spend it on home improvements.

[ForTheLoveOfDoughnuts]

Another vote from interest free credit card!

[NotDavidTennant]

I agree with others that a 0% credit card, or possibly even an unsecured loan, might be better.