Holiday Home Mortgages
A holiday home mortgage allows the borrower a first charge loan using an investment residential property as security.
A holiday home mortgage allows the holiday home to be rented out for short periods of time, usually up to 28 days per booking. Mortgage payments are covered by the rental income received from the holidaymaker.
How much can I borrow?
Typically a holiday home mortgage will be up to 75% loan to value (LTV) of the open market value (OMV) of the property. There have been higher loan to values previously and these may return.
The majority of Lenders will consider holiday home properties with either Freehold or a long Leasehold favourably, properties with a short Leasehold remaining may be more difficult to secure funding on.
As a long-term product, holiday home to let mortgage rates are highly competitive with a choice of fixed-rate and variable-rate terms.