Whilst the number of lenders who offer such products is limited, there are some great options out there and the recent surge in the number of owners looking to move into holiday letting has meant that more financial products are being created for this market.
Holiday Let Mortgages are designed for properties which will be let out on a short-term basis as holiday accommodation. With the Holiday Let market forecast to grow 4% year on year renting a property on a short term holiday-basis can be a great way to get a solid return on property investment.
Benefits of Holiday Let Mortgages
Airbnb properties are welcome You can stay in your property for up to 90 days a year You don’t have to be own another property You can have a number of individual holiday let mortgages and possibly organise a single holiday let mortgage if you have multiple properties on one title.
Criteria to bear in mind
You can access a mortgage from age 21 to 95 years You can borrow up to 75% LTV on your property You can re-mortgage from Day 1 No minimum personal income requirement
What’s the difference between a holiday let mortgage and a buy to let mortgage?
A Holiday Let Mortgage allows clients to purchase a property they can rent out to people on a short-term basis for holidays. It differs from a buy to let mortgage that expects rentals to be more long-term. This means that a client who needs a mortgage for a holiday home is more likely to meet the lending criteria for a holiday let mortgage compared to a buy to let mortgage that assumes the property is rented out for six to 12 months at a time.
How much can you borrow?
Up to 75% Loan To Value (LTV) oftentimes with loans customarily from £50,000 to £1.5 million. Usually the actual amount a Lender will lend is determined by your ability to afford the loan based on your expected holiday let rental income. You will likely need to show that the property can yield a minimum rental income and a Lender will usually take an average income over high, medium and low seasons.
We are happy to provide valuation letters for mortgage applications.To find out how much your holiday home can earn you. Contact us for a free appraisal on 01983 525710
Prospect Mortgage Services Ltd are authorised and regulated by the Financial Conduct Authority FRN number: 647962. Registered Office Address: The Old Piggery, Cheeks Farm, Merstone Lane, Merstone, Isle of Wight PO30 3DE. Prospect Mortgage Services is not responsible for, nor does the Financial Conduct Authority regulate, advice given with regard to taxation matters. Your home may be repossessed if you cannot keep up the repayments on any mortgage or other loan secured upon it.
Most holiday Home landlords will probably have seen recent articles in the national press about the decision by Airbnb to share their property owners’ details with HM Revenue & Customs. There have been concerns expressed by some Accountants that this disclosure of owner’s short term letting income may trigger a wave of investigations into previously
The Covid 19 pandemic has certainly caused many people to consider buying a second home in the UK, and as we know, pretty much everyone has dreamed at some point of having a house by the sea. Recent analysis by Martin & Co of Google search data, has revealed that Google searches for holiday homes
Whilst many of our guests are very keen to get away for a break from their homes or workplaces, some people are a little hesitant about relaxing into a property that has recently been vacated by other guests. In order to ensure that we do our utmost to keep our properties clean and as sterilised
The holiday cottage industry is understandably going through a difficult time, much like the rest of the world, but we are all hopeful that there is light at the end of the tunnel. We are beginning to see the first signs of restrictions being lifted or lessened around the world and we are all waiting
A recent report from the Association of Residential Letting Agents (ARLA) indicates that a great deal of landlords are considering switching from Residential letting to short term letting in the near future. There are a variety of reasons for this shift towards ‘Short stay’ or ‘holiday lettings’: Flexibility – Many landlords have seen the benefits
Yarmouth is a beautiful town located on the north-westerly side of the Isle of Wight, with the name deriving from the opening of the Western Yar River. Some of its exquisite architectural buildings are some of the oldest on the Isle of Wight, including a 16th century castle. The harbour is also busy with arrivals
February 21, 2020
Subscribe to receive exclusive content and news about holidays on the Isle of Wight.