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!
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.
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!
Maximise your chance of approval with specialist advice from an expert in Holiday Let Mortgages
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.
Holiday let mortgages FAQs.
Holiday Let Mortgage Calculator
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.
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.