Enhanced Wealth Limited

Whole of market mortgage brokers

CALL US 0800 316 5756

Mortgage Specialists - Residential ~ Holiday Let ~ Buy to let ~ Commercial

Straight talking mortgage advice

  • Mortgages
    • Buy to let mortgages
      • Buy to Let Refurbishment
      • Expat buy to let mortgages
      • Limited Company Buy to Let Mortgages
      • Buy to let remortgage Case Study
      • Buy to let FAQ
    • Holiday let mortgages
    • Let to buy
      • Let to Buy Mortgages Q & A
    • House purchase
    • Remortgages
    • Poor Credit
      • Poor Credit Q&A
      • Fresh Start Q&A Articles
    • Company Directors
    • Offset Mortgages
    • First time buyer mortgages
    • Second Charge Mortgages
    • Mortgage calculator
    • Mortgage basics
      • Jargon buster
      • Choose your mortgage
      • Fixed rate mortgages
      • Capped rate mortgages
      • Discount mortgages
      • Remortgaging
      • Base rate tracker
      • Cashback mortgages
      • 100% mortgages
      • Buy to let mortgages
    • What we do
    • Mortgage enquiry form
  • Commercial finance
    • Development finance
    • Remortgage to Develop a Derelict Property
    • Commercial Investment mortgages
    • Owner occupier finance
    • Bridging finance
      • Bridging Finance FAQ
    • Auction buying guide
    • Case studies
    • Enquiry form
  • Insurance
    • About income protection
    • About mortgage insurance
    • About loan insurance
    • Life cover
    • Pet insurance
    • Property insurance
  • Other services
    • Wills
  • About us
    • Client testimonials
  • Contact us
    • Directions
    • Terms
    • Privacy
  • Buy to let mortgages
  • Holiday let mortgages
  • Development finance
  • LIfe cover
You are here: Home / Featured / How to fund a holiday property

How to fund a holiday property

Published: November 21, 2014

The last census (2011) revealed that 246,000 Brits have holiday homes abroad and 1.6million have a second home in the country.

And why not? Buying a holiday property can be great way to have your very own bolthole – whether for your own use; as an investment property that you will let for holiday rentals; or for a holiday let now that will eventually become your retirement home.

Getting the finance

If you are hoping to buy a second or holiday home, then, unless you are the fortunate position of being a cash buyer, you will need to find finance.

What are your options?

You need to decide what you will be using the property for – purely for your own use as a second home, or as a holiday let? This will influence the type of mortgage you will need to arrange.

Getting holiday home finance can sometimes be more difficult than getting a buy to let (BLT) mortgage or traditional home loan. This is because fewer lenders offer this type of loan, plus certain criteria needs to be met, which may exclude some buyers.

The good news is that there are specialist holiday home mortgage providers, such as ourselves, who will endeavour to get you the most appropriate mortgage for your own individual circumstances.

The deposit

Whatever the purpose of your holiday home, firstly, you will need a deposit – typically 25-40% of the property value. To find the deposit, your options could include using the existing equity in your main home by means of:

  •  further advance
  • a remortgage
  • a secured loan

Each lender – and mortgage type – generally has its own set of requirements in order for you to be eligible to apply. For example, with a holiday let mortgage you may find people who are retired may not match the lending criteria for residential mortgage but may be eligible for a holiday let mortgage.

Income

Depending on whether you intend to be the sole user of the property or use it as a holiday let, then you will need to be able to:

  • prove you have enough income to cover the mortgage and running costs; and / or
  • prove that the property will have a gross rental income of at least 125% of the monthly mortgage amount

Can the property be let?

Before arranging any finance, you will need to check that you are allowed to use the property for the intended purpose – some newer properties in particular may have restrictive covenants. It is not uncommon to find that new build properties cannot be used for normal residential occupation and must be used wholly or partly for holiday let.

The next step

Making the most appropriate choice when financing your holiday home means you should get the most suitable and cost-effective solution for your own unique circumstances.

Using the services of a specialist broker such as ourselves at Enhanced Wealth means you will have access to a wider range of lenders (and therefore, products) to choose from, rather than going to your bank who generally only offer their own product, which may not be suitable for you. And moreover, in this very niche lending sector it is lilley that your bank do not have a product at all.

Buying a second or holiday home is a major cost – so make sure you get your financing right. For a no-obligation chat, please feel free to get in touch to see how we can help you.

Share this:

  • Facebook
  • Twitter
  • LinkedIn
  • Email

Related

Filed Under: Featured, Holiday home mortgages Tagged With: holiday homes, holiday property

Do you have the correct let property insurance?

If you are a landlord with either a buy to let property or a holiday let business you need to have the right insurance cover in place.

Our UK based insurance partners can offer advice on the best property insurance for your situation. Cover is available for overseas and UK based properties.

Please click here for more information.

Recent Posts

  • Ten Tips to Improve your Credit Score
  • I was repossessed 4 years ago can I get a mortgage?
  • How do we find a mortgage with bad credit?
  • Do all lenders carry out a credit check?
  • Offset mortgage advantages

Featured Article

Cheaper with a second charge mortgage

March 8, 2016 By admin

Last week we received a telephone call from a long standing customer. 9 years earlier John had sought our advice to purchase a new home and we had organised a great lifetime tracker mortgage which in the current period of low interest rates had performed well for him; very well. He said that the product that […]

The value of a good mortgage broker

March 1, 2016 By admin

No doubt competition in the mortgage market has great benefits for consumers in terms of innovation and price, but it does make finding the right one a difficult task. Yes there are more number crunching search tools than ever before, however unlike finding the highest interest rate on an Instant Access Savings Account it serves […]

Categories

  • Commercial (89)
  • Featured (12)
  • Finance (12)
  • Fresh Start Q&A (4)
  • Holiday home insurance (13)
  • Holiday home mortgages (17)
  • Independent financial advice (9)
  • Insurance (77)
  • Mortgage protection insurance (8)
  • Mortgages (104)

No babble, or waffle, just straight talking advice

We will always give you an honest assessment of your mortgage options with all of the costs involved. If you decide to go ahead we will also help with all of the paperwork.

QUICK LINKS

  • Home
  • Independent mortgage advice
  • Buy to let mortgages
  • Holiday let mortgages
  • Commercial finance
  • Life cover

Our advice

No babble, or waffle, just straight talking advice

We will give you an honest opinion of what is possible, in your individual case, which may sometimes involve doing absolutely nothing at all.

Straight talking mortgage advice

Recent Posts

  • Ten Tips to Improve your Credit Score
  • I was repossessed 4 years ago can I get a mortgage?
  • How do we find a mortgage with bad credit?
  • Do all lenders carry out a credit check?
  • Offset mortgage advantages

Contact Us

Please contact us to discuss your mortgage and finance needs.

T 0800 316 5756 or 020 8301 7930
F 020 3137 5060
E info@enhancedwealth.co.uk

  • Email
  • Facebook
  • Twitter

Copyright Enhanced Wealth Limited | All rights reserved | 140 Long Lane Bexleyheath Kent DA7 5AH | Authorised and regulated by the Financial Conduct Authority | Site Terms


Registered in England & Wales No: 04125057 THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Typically, we will charge £350 to a maximum of £495 in certain situations for arranging your mortgage and we will be paid commission from the lender, please ask for full details. We are entered on the FCA Register No 207532 at www.fca.org.uk/register/. The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers in the UK. The Financial Conduct Authority does not regulate will writing, finance, commercial mortgages and some aspects of buy-to-let mortgages.

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.