Buying a Holiday Home
Holiday let mortgages are a good option where you are looking to buy a holiday home either as an investment property for your own use, or a combination of the two.
If you are looking to let out the property as a holiday cottage then this is typically a specialist lending area, as most lenders will not allow this with a standard buy to let mortgage, and may specifically exclude holiday letting. There are only a few specialist lenders who offer holiday let mortgages in the UK.
Location is key as the property needs to be in a good holiday area and also attractive to potential holidaymakers to maximise any holiday lettings. The rental income is higher than with standard buy to let properties, but you also have to pay all of the bills for the property. The rental income usually needs to be 25-30% higher than any mortgage payment. You will also need a deposit of typically at least 25% towards the purchase, but this could be from equity that you have available in your existing home.
Several finance options might be available, including interest only or repayment, and the interest and some running costs can be offset against any profit for tax purposes.
We have extensive experience and knowledge of working with holiday home owners and successfully arranging finance for them in this specialist area, including start up properties. We specialise in holiday homes in Areas of Outstanding Natural Beauty (AONBs) and National Parks in the UK.
Holiday Buy to Let Mortgages and Commercial Mortgages may not be regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage.