Holidays Lets Mortgage

What is a holiday let mortgage?

A holiday let mortgage can provide self-employed business owners with finance to fund the purchase of a holiday home or to re-mortgage, renovate or develop an existing holiday property. Holiday rentals can be a great investment opportunity, especially if the holiday home, though predominantly used by tourists, could also be enjoyed by you and your family.

Holiday let mortgages are different to buy-to-let or residential mortgages and, therefore, come with extra checks and a lower loan to value ratio, whether you are self-employed or not. The required deposit is likely to be between 25-40%, and the nearer to the top end you can afford, the better holiday let mortgage deal you will secure.

Holiday let mortgage affordability

The nature of holiday rentals is that income is seasonal and sporadic: less steady rental income than a landlord would receive with a tenant in a buy-to-let property. Although if the holiday rental is frequently booked, income can surpass that of longer-term rents.

Holiday let mortgage lenders will be looking at whether you can afford the repayments so will be very interested in your personal income and will want to look at your recent accounts. The lenders will want to ensure self-employed applicants will have enough income to cover any breaks in rentals or maintenance issues that may arise.

A holiday let mortgage lender will also want to see a projected holiday let rental assessment from an appropriate specialist, to predict the likelihood of rental income from the holiday let.

Self-employed holiday let mortgage advisers

Holiday letting is becoming increasingly popular, but it is still a niche area for mortgages. Holiday let lenders tend to be specialised lenders, rather than the mainstream mortgage lenders.

Active has extensive knowledge about how holiday lets work and how to find holiday let mortgage deals for our self-employed clients. We have established strong relationships with the key holiday let mortgage lenders, so can help you make your dreams of owning a holiday rental property a reality. Let us make it happen for you. Booking a consultation is easy, simply click to…

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