Holiday Let Mortgages

The definitive guide to Holiday Let Mortgages. Everything you need to know about getting a holiday home mortgage.

Can You Get A Mortgage On A Holiday Let?

Usually, you can get a holiday home mortgage. It will ultimately depend on the construction of the property. Most property structures can be considered.

A holiday let can bring in a good income when in a good location. If you are intending to build it yourself you may need some form of bridging or development finance in order to start the project and switch to holiday let mortgages upon completion of the project.

What Are Holiday Let Mortgages?

Holiday Let mortgages are Mortgages designed for short term rental properties. They may not have the same range of lenders as a regular buy to let mortgage though.

The most common variety of schemes for Holiday let mortgages are with Airbnb.

So you want to own a property to rent out on a weekly or shorter basis in order to maximise the income from it. This is quite common and lots of lenders will allow this.

Should I Use A Holiday Let Mortgage Calculator?

Unfortunately it is quite a complex task to find out how much you can borrow on a holiday let. However, whilst we don’t have a Holiday Let Mortgage Calculator we will tell you how much you can borrow. We’ll also do it for free! If you want to know how much you can borrow give us a call for a no obligation chat about how much you can borrow.

Can I Get A Buy To Holiday Let Mortgage?

Most people can get a Buy to Holiday let Mortgage. As long as:

  • You own your own home.
  • You meet the minimum income requirements
  • And you are resident in the UK

But, even if you don’t meet the above criteria you may still be able to get Holiday Let mortgages. Whilst most lenders want the above, not all do. So still have a look into it. Especially if you are an Expat, as they can usually get a holiday let too. It’s just not as easy.

What Are The Best Holiday Let Mortgage Rates?

This changes constantly. Lenders adjust their rates constantly and this means that the best holiday let mortgage rates also constantly change.

The other thing to consider is the lowest rate isn’t always the best option for you. It may have higher arrangement fees or not be suitable for the property or your own personal situation.

In order to tell you the best holiday let mortgage rates for you a specialist mortgage broker would need to discuss with you your situation and make a bespoke recommendation for you.

What Holiday Let Mortgage Criteria Is There?

Holiday Let mortgage criteria will vary from lender to lender. It will ultimately come down to your situation and the property details. Some of the common criteria:

  • Some lenders will have a maximum loan to value of 70%
  • There may be minimum income requirements
  • You may need to own your own residential property
  • There could be minimum age restrictions.
  • The Lender may require evidence from a local letting agent on how much rent you can get.

What Holiday Let Mortgage Providers Are There?

There are lots of holiday let mortgage providers out there. Some of the ones we use a lot are:

  • Together
  • Principality
  • Interbay
  • Hodge Bank
  • Market Harborough
  • Foundation Home Loans

There are more but these are the main ones we use regularly. Choosing the right holiday let mortgage providers to fit your situation can be complicated. We always recommend you speak to a specialist.

Can I Compare Holiday Let Mortgages?

There are likely comparison sites out there that you could compare. However, you would just be comparing cost. The research and knowledge involved to work out which lender is right for you would take a lot of time. It is usually simpler to pay a qualified professional that will have the knowledge and experience to find the best solution to your problem.

Should I Use A Holiday Let Mortgage Broker?

It is almost always the best solution to use a Holiday Let Mortgage Broker. Even websites such as Money Saving Expert recommend using a mortgage broker. There are a few reasons for this.

  1. You get their wealth of knowledge and experience as well as all the tools they have at their disposal to get the right mortgage for your situation.
  2. They have spent time getting qualified to advise you on these situations (Or if they haven’t, are they the right choice for you? Always ask if the person you are getting advice from is qualified.
  3. They have likely seen your problem before, and know the solution. This can save you time, and as they say, time is money!
  4. Whilst there is usually a cost, when getting holiday let mortgages you are starting a business. This is a worthwhile cost that you should factor in.

Why should I use a specialist Holiday Home Mortgage Broker?

We get asked this a lot. If you are considering Holiday let Mortgages you are likely an experienced landlord. Therefore, you probably understand the value in having a professional handle the mortgage side of things.

But, let’s go through why you should use Albion Forest for your Holiday let Mortgage needs.

  • Packaging – We package your case correctly so that you get your mortgage offer in the most timely way. Giving you the highest chance of success with your mortgage. At the end of the day you want to get the property and get tenants in!
  • Cost – We don’t have set fees. We’ll discuss this with you when you call. However, we generally charge £199 per application, and a one time broker fee may be required for your first mortgage with us. But that is a lifetime fee.
  • Time – We save you time. Not only so that you do not have to do the mortgage yourself and all the work that comes with it. But also, getting the right mortgage for you, and packaging your case correctly as we’ve already mentioned.
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