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Expert holiday let mortgage advisors.

Take a holiday from the mortgage process! Our team of expert mortgage advisors are here to handle the details and achieve the right deal for you.

Your home may be repossessed if you do not keep up repayments on your mortgage. When The Bank Says No is a mortgage broker, and not a lender.

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Finding The Best Holiday Let Mortgage Deal For Your Circumstances

Holiday let mortgages can be complicated. The process varies depending on where the property is located and there are often stricter lending criteria to navigate.

Fear not; our specialist holiday let mortgage advisors are here to help you find the right mortgage without the stress. We’ll match your circumstances and your property to the best lender available.

We have an intricate knowledge of the market and an eye for a good deal. With our friendly advisors on your side, your holiday let business can get started in no time at all!

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What is a holiday let mortgage?

Increasing numbers of investors are looking at buying homes in holiday hotspots to generate a useful second income. With special tax advantages if they are rented out to tourists in the UK or European Economic Area, they are an attractive option for those who can secure the mortgage they need to purchase the holiday let property.

Holiday let mortgages are designed to purchase a property that will be let out to tourists on a short-term basis. They differ from a holiday home mortgage, which is a loan to buy a second home that will only be used by the buyer. Holiday let mortgages also differ from a buy-to-let mortgage where money is borrowed to buy a property that will be rented out on a long-term basis to generate a regular rental income. Lending criteria will include whether the holiday property will be able to provide a rental income of around 125%-145% of the mortgage. You will also have to demonstrate an ability to cover the mortgage payments during the quieter months when the property isn’t being occupied.

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We can support you and help you to make yourself as attractive to banks as possible, ready for your next application!

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In order for us to assess your credit history and suitability for different mortgage products, you will need to check your file.

What sort of mortgage do you need for a holiday let?

If you’re looking to buy and run a holiday let, you’ll need to apply for a specialist mortgage. Holiday let mortgages are intended for properties that will be let out to different customers throughout the year as holiday accommodation.

This kind of mortgage can be more complex to apply for, so it’s important to talk to a professional mortgage advisor as soon as you know what you want to do. Our experienced team will discuss your circumstances in detail, help you fine-tune your application, and identify the lenders best suited to your needs. Give us a call and we can get going!

We take the pressure off.

Is the mortgage process making you feel overwhelmed? We know that there’s a lot of information out there, and not a lot of clarity. Luckily, our experienced advisors understand the mortgage market inside and out and will stop at nothing to find a holiday let deal that suits you.
Don’t struggle through the process on your own. Together, we can help you purchase the holiday let of your dreams, hassle-free.

Turning Your Nightmares Into Dreams

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When you think you’ve hit that brick wall and have all but given up hope of finding mortgage finance, When the Bank Says No are here to turn your ‘No’ into a ‘Yes’. We have access to a range of specialist lenders who are willing to help those that the High Street banks just won’t touch. Get in touch today and see how we can turn your dreams into a reality.

How do I find a suitable holiday let mortgage?

Holiday let mortgages are not always available from standard high street banks and lenders. For that reason, it’s important to talk to a mortgage advisor who specialises in holiday let mortgages at the earliest opportunity. When the Bank Says No can help you identify lenders who specifically provide mortgages to holiday let borrowers, and advise you at every stage of the application process. With our help, the right holiday let mortgage is just around the corner!

How much deposit do I need for a holiday let mortgage?

A holiday let mortgage will generally require a 25% minimum deposit calculated on the purchase price of the property or the valuation – whichever is lower. If you can’t manage this or are concerned about the deposit you should put down in any way, we’ll be more than happy to advise you on how to approach things moving forwards, taking into account your exact circumstances.

Higher deposits can give you access to better deals and more preferential interest rates. Like, buy-to-let mortgages, deposits for holiday lets are higher than regular mortgages because they carry greater risk. Letting out a holiday home offers no real guarantees that the minimum income required will be met so that the mortgage repayments can be met.

Frequently Asked Questions

How much deposit do I need for a holiday let mortgage?

A holiday let mortgage will generally require a 25% minimum deposit calculated on the purchase price of the property or the valuation – whichever is lower. If you can’t manage this or are concerned about the deposit you should put down in any way, we’ll be more than happy to advise you on how to approach things moving forwards, taking into account your exact circumstances.

Higher deposits can give you access to better deals and more preferential interest rates. Like, buy-to-let mortgages, deposits for holiday lets are higher than regular mortgages because they carry greater risk. Letting out a holiday home offers no real guarantees that the minimum income required will be met so that the mortgage repayments can be met.

Certain lenders will allow this, but it will need to be established at the start of the mortgage process. If you know that Airbnb is going to form a part of your holiday let business, talk to one of our experienced advisors today.

We’ll help you navigate any restrictions or regulations and ensure you find and apply for an appropriate deal that can accommodate your plans. We can also offer guidance on regional regulations where certain areas restrict short-term letting, ensuring there are no unforeseen pitfalls on your road to holiday let ownership!

There are tax implications to bear in mind when purchasing a holiday let. Whilst a holiday let will be regarded as a business, a Buy to Let will be treated as an investment – and these are taxed differently. With a holiday let you can deduct some of your operating expenses from your rental income before you are assessed for tax, including the interest you are paying on your holiday let mortgage.

When selling, you will also need to consider stamp duty, land tax, income tax, and capital gains tax. It may also have implications for your inheritance tax bill. To understand what taxation you might face, make sure you talk to an accountant and get the most up-to-date information.

Holiday lets will usually be rented out for far less time of the year than a normal rental property. That said, they can normally be rented out for a higher amount for each visit, meaning that if you can let it out regularly, you could generate a much larger rental income.

This brings an element of risk as you need to have a good strategy in place to ensure that your holiday property is let for as much of the year as possible. Holiday let rental income will inevitably fluctuate, peaking in the busy summer months, but tailing off at other times of the year. As a result, the amount a lender will be willing to loan you for a holiday let mortgage will be based on an income projection figure that you will always be under pressure to meet.

Failure to attract sufficient numbers of visitors and meet your expected rental income could lead to you failing to meet your mortgage interest payments, potentially leading to you having to give up the holiday property.

Yes, you can look at purchasing a holiday let through a limited company. You will be able to choose from using a Specified Purchase Vehicle (SPV) which is in the company name or your own name.

This method is not mainstream, however, and many high street lenders will not be geared up to offer it. But don’t worry; our mortgage specialists are well positioned to guide you and your limited company towards the right holiday let mortgage for your needs.

Yes, as long as you make this clear! Owners of holiday lets may be tempted to take short breaks there themselves – after all, you’ve made the place so beautiful and desirable! However, it’s important to bear in mind that not all lenders will allow this.

The best way to approach the situation is to be upfront about your plans at the beginning of the process to prevent delays further down the line. Talk to our team and we can advise you on finding a suitable mortgage deal for your circumstances and future intentions.

Specialist mortgage advice & support for holiday lets.

When the Bank Says No is a team of mortgage advisors with years of experience helping clients find and apply for the most appropriate holiday let mortgage for them. We know the mortgage process can be a nightmare – especially when you’re applying for something different to a straightforward residential mortgage. That’s why we’re here to make things a lot simpler. Our advisor will provide you with all the tools, advice, and information you need to proceed with confidence and achieve mortgage success.

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