The cost of a family break in the UK has risen noticeably since 2019. Accommodation, fuel, and eating out have all gone up with broader inflation. At the same time, personal loan interest rates are higher than many families will have seen the last time they borrowed. That combination is worth knowing before you start planning.
What has changed since 2019?
- Inflation pushed up the cost of travel and accommodation. UK Consumer Price Index inflation ran well above 2% for an extended period after 2021, meaning the same break costs more in cash terms than it did a few years ago.
- Personal loan rates have risen. The Bank of England base rate moved significantly upward from its historic low of 0.1%, which fed through into the cost of personal borrowing. Representative APRs on unsecured personal loans are higher now than they were at the start of the decade.
- Lenders are applying stricter affordability checks. The FCA expects lenders to assess whether repayments are genuinely affordable over the full loan term, not just at the point of sale.
Why this matters for a family mini-break
A weekend away for a family of four can easily run to several hundred pounds once you include travel, somewhere to stay, and food. That is a meaningful sum, and some families consider putting it on a personal loan or credit card.
The important number to look at is not the monthly repayment. It is the total amount repayable: the full cost of the loan including all interest. On a £600 loan at a representative APR of 39.9% over 12 months, you could repay well over £730 in total. The break itself costs more than the headline price.
A useful first step is to run the numbers through a loan repayment calculator before you commit to anything.
Three lower-cost approaches worth considering
1. Staycations with flexible dates Prices for UK holiday parks, camping, and self-catering cottages shift considerably depending on the week. Avoiding school holiday peak weeks, where possible, can make a real difference to the cost. Mid-week arrivals often attract lower rates than Friday starts.
2. Day-trip combinations instead of overnight stays A series of well-planned day trips across a few weekends can give children a genuine sense of adventure at a fraction of the cost of a residential break. National Trust sites, country parks, and many seaside towns have free or low-cost entry. MoneyHelper's budgeting guidance suggests planning the spend before you leave home rather than improvising on the day.
3. Saving in small amounts in advance If the break is two or three months away, putting aside a set amount each week means you may not need to borrow at all. Even £25 a week over eight weeks gives you £200 without any interest cost. Start small, and make the savings target visible somewhere you check regularly.
Who may be affected by rising borrowing costs
- Families who borrowed for holidays at low rates pre-2022 and are now considering a new loan at current rates.
- Anyone comparing monthly repayments across loan offers without checking the total amount repayable.
- Households whose budgets are already stretched by higher everyday costs and who are weighing whether a break is affordable right now.
If you are considering borrowing to fund a family trip, it is worth checking what the loan will cost in total, not just per month, and whether the repayment fits into a realistic monthly budget rather than just an optimistic one.
What to read next
You can also use the loan repayment calculator to see the total cost of borrowing before you apply, and the budget planner to check whether repayments fit your monthly spending.