Holiday let mortgages are suitable for properties that are to be used primarily for holiday lettings. These can be fantastic investments as the peak season income can be very high.

There is more work involved in running a holiday let rather than a buy to let, but there are several advantages. With a buy to let property the tenant has to sign an Assured Shorthold Tenancy (AST) agreement. This normally lasts 6/12 months.

Now a holiday let property will have a high turnover of tenants as people will generally only holiday for 1-2 weeks at a time. After each visit the property will need to be cleaned and re-stocked. You will also need to maintain the gardens, grounds and take care of the rubbish and window cleaning etc.

But if you own a holiday let property then you can use this for your own family holidays when the property is empty. Thus reducing your family holiday budget.

The lettings income generated from a holiday let will differ according to location, facilities and the property condition. It pays to invest a little to upgrade your holiday let to 4 or 5 star accommodation as you can then charge more rent.

The income generated is liable for tax but you can offset the running expenses of the property to reduce the tax bill. The interest element of a holiday let mortgage or other finance taken out to purchase the property can also be included as an expense. If your property qualifies as a Furnished Holiday Let then special tax rules apply. The main advantage is that any income loss that the property makes can be offset against your personal income thus reducing your own tax bill!

As a Furnished Holiday Let is classed as a business by the Taxman you will also have use of the new Entrepreneurs Relief which reduces the tax payable when you eventually sell the property.

Gaining mortgages for holiday let properties is a little trickier than normal. Most high street lenders will not allow the property to be rented to holidaymakers as they need an AST in place. However, as a specialist holiday let mortgage broker we know the lenders in this market and can arrange holiday let mortgages and holiday home mortgages with ease.

We can also cater for the more exotic holiday lets such as castles, barn conversions and lighthouses!�