Remortgaging can fund holiday homes

Simply by taking out a new mortgage, homeowners can save enough money in two years to fund a deposit on a holiday home.

Data from New Skys shows the potential savings over two years available by remortgaging can be up to £3,700.

And this is more than enough to fund the deposit on a holiday home in an emerging market such as Egypt.

"Remortgaging, for a better rate or to raise cost effective capital, is no longer a long and painful experience," said Jonathan Burridge, managing director 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-to-let, agreed almost instantaneously,"

A variable rate mortgage 6.75 per cent on a typical loan of £107,000 costs £607 a month in repayments, based on an interest-only mortgage.

If this loan is moved to a fixed-rate or tracker mortgage deal at 4.99 per cent or less, homeowners pay just £451 a month.

Over the first two years the mortgageholder can save £3,744 in repayments.

And overseas property experts point out this is more than enough to fund a deposit on a holiday home.

"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," said Roy Bristow, New Skys marketing manager.

Nationwide's 4.88% fixed-rate deals: Nationwide Building Society makes fixed-rate mortgages cheaper

Woolwich 4.94% (current rate) trackers: Woolwich offers lifetime tracker mortgage at base rate +0.19%

More product news: www.myfinances.co.uk/productnews XXX