Holiday Let Mortgages

ARE YOU THINKING ABOUT BUYING A PROPERTY TO RENT OUT FOR SHORT-TERM LETS OR HOLIDAY ACCOMMODATION?

It’s a good idea to chat with a mortgage broker who knows the market well and can help you find a mortgage lender who specializes in this type of investment. At THE MORTGAGE CHOICE we have a extensive experience in helping people find the right holiday let or short term let mortgages for their investment properties.

HOLIDAY LET AND SHORT TERM LET MORTGAGES EXPLAINED

Holiday let mortgages are designed for people looking to borrow money to buy a property that will be let out on a short-term basis to multiple tenants for use as a holiday accommodation or short term lets. You can get a holiday let mortgage on a new purchase or your existing holiday home if you have decided to rent it out on a short term basis.

HOW DOES A HOLIDAY LET OR SHORT TERM LET MORTGAGE WORK?

Holiday let mortgages have additional criteria compared to standard residential or buy-to-let mortgages. These may include higher interest rates, arrangement fees and tax considerations.

WHAT ARE THE LENDING CRITERIA FOR HOLIDAY LET MORTGAGES?

Lenders typically require a minimum income level and may specify criteria for property location, value and the applicant’s financial stability.

RENTAL INCOME – HOW IS IT ASSESSED FOR HOLIDAY LET MORTGAGES?

Unlike residential mortgages, lenders often consider projected rental income when assessing affordability. Rental income is expected to cover a percentage of mortgage interest payments, usually based on verified weekly rental figures via local letting agent. These figures are based on a low, medium and high weekly rental income, but some lenders will also assess borrowing using just a normal monthly tenancy rental income.

WHAT FACTORS INFLUENCE THE INTEREST RATES FOR HOLIDAY LET MORTGAGES?

Interest rates for holiday let mortgages can be influenced by various factors, including the risk associated with seasonal rental income, property management costs and market conditions. Lenders may adjust rates accordingly to mitigate these risks.

WHAT ARE THE TAX IMPLICATIONS ASSOCIATED WITH HOLIDAY LET PROPERTIES?

Unlike Buy to Let or residential properties, holiday let properties have different tax implications and it is therefore important for you to seek advice from a tax adviser to fully understand the tax benefits related to holiday let properties.

THE MORTGAGE CHOICE CAN HELP YOU FIND THE RIGHT HOLIDAY LET MORTGAGE.  

Don’t navigate the complexities alone. Trust us to help you to understand holiday let mortgages and find you the most suitable mortgage lender for your Holiday Let Property.

With our expertise and extensive lender network, we can help you find the best holiday let deal tailored to your needs. Unlock the potential of your holiday let investment with us and speak to a mortgage broker today.

OUR PROMISE TO YOU

We will carefully assess your personal circumstances, your mortgage requirements and based on this we will make a recommendation giving you the most suitable mortgage advice.

themortgagechoice is located in Byfleet, Surrey. We have clients in Guildford, Woking and across the UK.

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