The existence of a specific mortgage designed for a holiday let property is not widely known. Holiday let mortgages have been around for a number of years now with many lenders recognising that these make good business.
However, there are factors associated with a holiday let that means a standard buy to let mortgage will not be appropriate. As a whole of market mortgage broker we have access to all lenders schemes including buy to let and holiday let.
A buy to let mortgage is assessed on the property valuation and the rental income from an Assured Shorthold Tenancy (AST). There is no AST with a holiday let property as the holidaymakers will only be staying for a few days or weeks. This means that many mortgage lenders are unable to correctly assess the rental income as their mortgage surveyor will not be experienced in this market.
In addition, many holiday lets have restrictions on how the property may be used, these tend to mean that the property cannot be 100% occupied by yourself and used as your main residence. The restriction is there to ensure the property is used for holiday lettings business.
So with these 2 issues, many standard mortgage companies simply do not understand holiday let mortgages and prefer not to deal with them. Fortunately, as holiday let mortgage specialists, we know the lenders that want to do business.
We can also accommodate non-standard properties;
- a main residence with a holiday let annexe
- a main residence with several outbuildings for holiday let
In addition, we are happy to discuss holiday let property development projects. Maybe you want to convert a barn into a holiday let or build some holiday lodges on your land?
Our commercial finance partners are very willing to look at these types of projects and we have the knowledge and experience to make sure they are presented in the right way.
Please call us on 0800 840 3111 to discuss your holiday let mortgage.