The Great Staycation Price Hike
Summer 2021 is being hailed the year of the Staycation, but your Great British Holiday might end up costing more than you’d expect.
With international travel restrictions in still place, many people have chosen to book their summer and autumn breaks right here in the UK.
But with demand for UK holiday accommodation soaring, so too are prices.
National consumer watchdog Which? has been tracking the price of holiday lets in popular tourist spots around the country, and has found a hike of around 35% on average.
Some Airbnbs more than doubled their rates in places like Brighton and St Ives in Cornwall.
And anyone looking for the larger family-style accommodation will find week-stays costing as much as a typical fortnight all-inclusive at an exotic luxury island resort.
Even the most conscientious savers among us are being caught out by the cost of getting away.
But with the year we’ve had, the need for a break is palpable.
So many people have days owing - having had very little time off work in the last 12 months - and lots of us are looking forward to having some long-awaited fun with family and friends.
There’s a very real sense that people not only deserve a break, but that taking time out from the everyday is vital for their health and mental health.
For those with access to a credit card, it can be worth booking with the card in order to benefit from the protection it offers.
(Under Section 75 of the Consumer Credit Act, any purchase worth £100 - £30,000 on a credit card is protected if the company goes under, which is a very real prospect in the current climate).
But with a typical APR of 19%, this can be a very expensive way of borrowing a large amount of money.
As a Payroll Partner member, you have access to loans of £5,500 to £10,000 with a typical APR of 15.3%, meaning you could immediately pay off the cost of the holiday (and whatever else is already on the credit card) and save yourself a fair bit of cash every month.
For those without the benefit of a credit card, the Exclusive Payroll Partner loan is a great option for covering the cost of the holiday in one go, paying back an affordable sum each month directly through your existing Payroll Saving scheme.
For example, a loan for £5,500 at 15.3% APR paid back over two years would equate to just over £260 per month.
And because you’re borrowing from an ethical lender like a credit union, you can be reassured there are no hidden extras looking to trip you up - like fees and penalties - and the money you pay back is reinvested directly into providing loans for people in your community.
Are you eligible for an Exclusive Payroll Partner loan? The answer is yes if you work for any of our Payroll Partner organisations.
*Representative example. Borrowing £5,500 over 24 months will cost £265.63. Total amount repayable is £6375.12 which includes interest at 15.6% APR. The figures given above are for illustrative purposes only. The actual interest rates and repayment amounts may vary subject to loan amount and status.