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 ?

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.

No just save

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.

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

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

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

No.

I did that but with a loan !

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

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

Save up.

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

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?

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.

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.

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?

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.

Widowanky that’s insane !!

Absolutely not.

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!

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...

Yes definitely

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!

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

Another vote from interest free credit card!

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