Holiday Let Mortgages

Holiday let mortgages provide the borrower with a first-charge loan (mortgage) using an investment residential property as security.

Holiday let mortgages likewise allow the property to be rented out for short periods at a time, this is usually up to a maximum of 3 months, in contrast to a buy-to-let property.

Holiday let mortgages are ideal for landlords that specifically wish to cater to Airbnb, contractors, business travellers, and the holiday let markets.

The mortgage repayments are covered by the holiday let rental income, typically this is to a maximum of 75% loan to value (LTV) of the purchase price or open market value of the property.

A holiday let property may additionally be suitable for serviced accommodation. Serviced accommodation is a catch-all term that includes both purpose-built apart-hotels and residential buildings that are used as short-term lets. A purpose-built apart-hotel will require a commercial mortgage rather than a holiday let mortgage.

Is the property suitable as a holiday let?

Holiday let properties are generally located in places that attract holiday tourism, such as coastal areas, areas of outstanding natural beauty, have historical connections, and much much more. In fact there are so many parts of the United Kingdom that individuals, families, friends, and groups want to visit, explore, relax, and unwind.

Holiday let mortgage lenders will generally expect holiday let properties to be either close to or in locations that attract the tourist pound (£££).

A holiday let property that doesn’t meet this criteria may be more suitable as serviced accommodation.

Holiday let mortgages, how much can I typically borrow?

Holiday let mortgages are generally to a maximum of  75% loan to value (LTV) of the purchase price or open market value (OMV) of the property.

Holiday let mortgage providers will generally accept holiday-let properties that are both Freehold and Leasehold.

For holiday let properties with a short leasehold remaining it may be difficult to secure a mortgage.

As a long-term product, holiday let mortgage rates remain highly competitive with a good choice of both 2-year, 5-year fixed-rate, and variable-rate terms available.

Some benefits of using us

In addition to property valuations, building insurance, and legal support, we offer a wide range of additional services. For information on this, please see our Business Support Services and Trusted Partner Network.

Our business support and brokerage services include fully packaging and submitting your lending application proposal in addition to ensuring the most competitive rates and terms.  We will ensure that your mortgage application is processed quickly and efficiently. At the same time, we will keep you updated on your application’s progress in order that funds are available in the shortest possible time.

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