Remortgaging could pay for holiday home says research

Homeowners could raise the initial costs of a holiday home in an up-and-coming investment market simply through smart remortgaging, says research for New Skys.

The website calculated that homeowners could save themselves £3,700 over two years by finding the best mortgage rate deals.

This would be more than enough to make a down payment on a holiday home in an emerging investment market such as Egypt or Morocco.

“Remortgaging, for a better rate or to raise cost effective capital, is no longer a long and painful experience,” said Jonathan Burridge of Quantum Mortgage Brokers.

“With the technological advances in the mortgage industry in the last few years it is now possible to have your new mortgage offer, be it on standard terms, self-certification or buy-let, agreed almost instantaneously.”

Switching from a variable rate 6.75 per cent mortgage worth £107,000 to a fixed rate or tracker deal charging 4.99 per cent cuts monthly payments from £607 to just £451.

Over the course of two years, this would save homeowners £3,744 said Roy Bristow, marketing manager at New Skys.

“With house prices starting from as little as £30,000 in markets that continue to mature, getting onto the overseas property ladder can be much more affordable than buying a second home in the UK, while providing a similar return on your investment,” he said.

© Adfero Ltd

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