HOLIDAY LET MORTGAGES

One more thing off your mind, with our expert holiday let mortgage brokers.

Holiday let mortgages are available to people looking to purchase a holiday home which they wish to let out on a short term basis to holiday makers or visitors to the area where the property is located.

There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.

Your property may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £495.

Who is eligible for a holiday let mortgage?

Most lenders will require the borrower to own their own home themselves and also to have a good level of income, but as long as you meet the lender requirements and you have a deposit, generally 25% of the property value, and you meet the lenders’ criteria then we can source the right lender for you for your holiday accommodation.

What else is taken into consideration when lending on a Holiday Let?

The lender will assess the property, it’s location, and also request what the likely rental yield will be from a local agent who has experience in letting holiday properties. The lender will require an average weekly figure for bookings of a similar type of property in the low, medium and high seasons for the property. They will then generally average this out over a 40 week period, to allow for weeks where the property is not let, and work out other potential outgoings to provide you with the maximum borrowing from this income figure.

If you are considering purchasing or re-mortgaging a Holiday Let then it is worthwhile discussing all your options with a qualified specialist holiday let mortgage broker who will be able to assess all the variables and find the most suitable lender.

We’ll support you with round-the-clock service, right through to completion.

Latest Mortage Deals.

We’ve picked out some of today’s holiday let mortgage rates to give you an idea of what interest rates could be available to you.

To discuss your options, call us today on 01242 696235

FAQs.

Which is better: buy-to-let mortgages or holiday let mortgages?

Lenders generally categorise buy-to-let mortgages and holiday let mortgages as two separate types of lending. The key difference between the two lies in the purpose of the property and the way it generates income. When it comes to property investment and investing in real estate, many individuals choose to invest in buy-to-let properties as a means of generating passive income.

Buy-to-let mortgages are typically a good investment for properties that are rented out on a long-term basis to tenants. These properties are generally located in residential areas and generate a steady monthly rental income. Mortgage lenders assess buy-to-let mortgages based on factors such as property value, rental income potential, and the borrower’s financial position.

On the other hand, holiday let mortgages are designed for properties that are going to be let on a short term basis. The lender will evaluate your income, affordability, and deposit when assessing your application. Additionally, they will require information about your holiday let property and the projected income you anticipate, including seasonal rental income. This is necessary because your property should generate approximately 125% to 145% of the interest payable on mortgage amount you require.

Is there a difference in interest rates between buy-to-let mortgages and holiday let mortgages?

Yes, there can be a difference in interest rates between buy-to-let mortgages and holiday let mortgages. The interest rates for both types of mortgages depend on various factors such as the lender, your financial situation, the property value, the projected income, and the loan amount.

Generally, holiday let mortgages tend to have slightly higher interest rates compared to buy-to-let mortgages. This is because holiday let properties are often seen as higher risk due to their seasonal nature and potential fluctuations in rental income.

What is the interest rate for a holiday let mortgage in 2023?

It is difficult to predict the exact interest rate for a holiday let mortgage in 2023, as rates can vary depending on market conditions and individual circumstances. However, it is advisable to stay updated with current mortgage rates and consult with an experienced mortgage broker for accurate information closer to the time. When considering a holiday let mortgage, it is important to assess the suitability of the mortgage for your specific needs and financial situation. Additionally, it is recommended to be aware of the regulations set by the financial conduct authority.

Are there any alternatives to a holiday let mortgage?

Yes, there are alternative options to a holiday let mortgage. 

Buy-to-let mortgages: If you are unable to secure a holiday let mortgage, you could consider a traditional buy-to-let mortgage instead. This type of mortgage is specifically designed for properties that are rented out on a tenanted basis using an Assured Short Term Tenancy agreement.

What are the benefits of getting a holiday let mortgage?

Getting a holiday let mortgage offers several benefits. It allows you to generate rental income from your property helps cover mortgage payments and other expenses, provides potential tax advantages, and allows you to have a vacation home that can appreciate in value over time.

When you put down roots, so do we.

Working with our long-standing charity partner, Gloucestershire Wildlife Trust, we pledge to plant a tree in your name when your mortgage completes.