Holiday let mortgages are used to finance
properties rented out on a short-term basis as holiday accommodation. Owning a holiday let property gives
you the freedom to enjoy your property as a holiday home, but also run it
as a business that can generate a healthy income.
Our trained mortgage advisers provide comprehensive support in
finding the right holiday let mortgage to fit your circumstances and allow you to buy the second home you’ve
always dreamed of with the flexibility to rent it when you are
not using it.
A sound investment
Holiday let ownership offers many benefits, with high rental
yields and tax benefits available to those that meet the lending criteria for a holiday let mortgage. If
purchased in a favourite holiday destination, it also
gives owners a home-form-home in a place they enjoy spending time with family and friends.
Some own a single holiday let property, but for others it’s a
thriving business, with multiple properties spread over several sites providing a full-time occupation. We
ensure clients are aware of the key points of holiday let ownership.
- The property must remain available for personal use for
up to 90 days each year.
- Rental incomes can be significantly higher than traditional buy-to-let properties, particularly
if located in a popular tourist hotspot.
- Lenders usually require a higher deposit, typically between 25% and 30%.
- There are tax
advantages with holiday let mortgages that meet specific criteria, increasing their appeal and
making them sound financial investments.
- Due to the higher risk levels, lenders often require
rental income of 125% to 145% of the mortgage payments when making
an offer.
- However, property owners can enjoy rental yields that
can exceed 10%, depending on the buoyancy of the market.
- Property usually appreciates in value, making a holiday
let an asset that could make a considerable contribution to a comfortable
retirement when sold.
