- How do SoSmart Money make their money?
- Which products can I compare with SoSmart Money?
- Who are SoSmart Money?
- Will I be contacted by other companies?
A holiday loan does exactly what it says on the tin - it is a loan that enables you to finance a holiday to wherever you wish to go - whether it is a fortnight in Butlins, or trekking though the Amazon, the loan can be used for any holiday you wish. Holiday loans can also be used to pay for other debts you may have gained during Christmas or summer holidays, and this is generally offered by lenders as a consolidation loan.
A holiday loan is generally offered to customers with good credit histories. In most cases they come in the form of an unsecured loan, but in some cases, the lender will ask for some collateral on the loan to ensure their money is secure. How much you will be able to borrow will very much depend on your credit history, but could be anywhere between £5,000 and £50,000. Larger loans will generally require the loan to be secured. Holiday loans can be applied for quickly as there is very little legal documentation required to apply for one.
Lenders generally ask for holiday loans to be repaid on a monthly basis. Holiday loans can be quite flexible as some lenders offer the option of 'skipping' some repayments at certain times of year, such as Christmas, which could help you free up your finances at certain times of the year. The disadvantage to doing this is that your unpaid balance will still accrue interest, making the cost of the loan higher each time you chose not to make a repayment.
Holiday loans come with a wide range or repayment periods. Loans tend to be cheaper if you take them out over a shorter repayment period, so keep an open mind to shorter repayment periods if you can as it may save you money in the long run. Although shorter loan terms tend to come with a higher APR (Annual Percentage Rate) than longer term loans, think about the total you will be repaying over all. It may save you money in the long term to get a shorter payment term with a higher APR.
Comparing APRs of the holiday loans on offer is a good place to start shopping around for the best deal. It is worth noting that lenders have to advertise typical APR. Typical APR is the rate they offer to 66% or more of their customers, and is not necessarily the APR they offer everyone. Other things to consider before applying for a holiday loan are what you realistically need to borrow for your purposes, and what you can afford to repay. Do not be tempted to borrow more than you need.
Holiday loans are not without some risks. For example, if you fail to keep up the payments on your loan, you could risk being taken to court by the lender. If you secured your loan against some collateral, it could be at risk because your lender could force you to sell your property to repay your debt. Failure to keep up repayments could also lead to CCJs (County Court Judgments) being leveled against you.
Our trained expert advisers have access to the UK’s leading lenders and using their knowledge and skills will place you with the most suitable leader and product for your needs.
So Smart Money are specialists when it comes to mortgage and insurance. We have access to the UK’s leading brokers and using their knowledge and skills they'll place you with the most suitable lender and product for your needs.
Speak to an expert for mortgage advice, life insurance cover, to protect your income, insurance your home or contents and private medical cover.
"Matthew at So Smart found me the best deal for my first Mortgage, he was extremely helpful! I would highly recommend this company!"
"I've been looking to switch mortgages recently to secure a better rate and the guys at So Smart Money helped me do just that."
"My mortgage enquiry was dealt with swiftly and professionally. I would highly recommend So Smart Money to others."
"I've used sosmartmoney a couple of times now, I checked my old mortgage with them and it encouraged me to get a better deal."
Winner of AI Finance awards 2015 for:
Best personal finance comparison site &
Best online price comparison platform