Holiday Lets

So you’ve decided to purchase a holiday let home and are now wondering about the best holiday let mortgage?

It’s a great way to introduce additional income into your household, but what now?  

FAQ’s

Even though you may decide to live at your holiday let for part of the year, you will still need a specialist holiday let mortgage. It’s illegal to let your home under the ‘residential mortgage’ umbrella, so let us help. We are mortgage adviser with specialist experience and we will know who to go to for your specific circumstances. 

As with literally every kind of mortgage, you have options. With holidays lets, this depends on how often/how long you’re planning on living it. This will affect the fixed-rate or variable rate deals.

Unfortunately not. BTL products, generally speaking, are for you to let the property to tenants on a shorthold tenancy. They are classed as long-term agreements, whereas a holiday let is exactly that – a short term holiday rental. 

Also worth noting, due to the fluctuation in holiday rental income, fewer lenders are comfortable with offering a holiday let mortgage. Clearly, there are peaks and troughs with most holiday rentals, so you’re likely to have a higher interest rate and fees.

As you’re offering up your own home as furnished holiday accommodation, you will need to change your mortgage to a holiday let style mortgage. Always check your fees first, as it may well be worth waiting until the end of your current term before switching products. 

As you might have gathered from reading so far, any mortgage not off-the-shelf has somewhat different criteria. And a holiday let mortgage is no different. The standard mortgage would have a 75% LTV (loan to value), which means you’d need to save up a rather substantial 25%.  

We will explore all options for you and make sure we source the most cost effective mortgages for your requirements and help make your holiday business a success! 

We are also part of a private networking group, so if you need a hand with setting up your holiday let business, then I can recommend several Accountants who can advise the best way forward.