HOLIDAY LET MORTGAGES
Simply Mortgages are a specialist buy to let mortgage broker, we can help you secure Holiday Let mortgages from the whole of the market.
A Holiday Let mortgage is a mortgage secured on a property that you intend to let out to a holiday maker.
The lending criteria for holiday let mortgages is different to traditional or buy to let mortgages. With fewer lenders in the holiday let market, it’s important to understand the criteria you’ll have to meet in order to get a mortgage. Each lender will have their own set of criteria for holiday let properties, ranging from minimum income requirement to minimum loan value.
As there are strict criteria which need to be met, lenders will require proof of gross rental income to ensure that the monthly mortgage repayments can be met by the holiday let property. To get an estimation, it’s advisable to consult a reputable holiday letting agent who can provide a realistic rental projection.
Each lender will work out how much you can borrow using a different calculation. Simply Mortgages will use our knowledge and experience of the market to match you to the correct bank, building society or specialist lender for the mortgage you need.
Firstly, to qualify as a furnished holiday let, ‘your property must be available for letting as furnished holiday accommodation letting for at least 210 days in the year’, according to HMRC. Furnished holiday let rules also dictate that ‘you must let the property commercially as furnished holiday accommodation to the public for at least 105 days in the year’.
Holiday home owners also have to consider the pattern of occupation. While you can rent out your property for a longer term (defined as 31 days or more), there are limits. For example, the total of your longer lettings cannot exceed 155 days in the year. The full details of the holiday occupancy rules can be found on HMRC’s website.
At Simply Mortgages we have both knowledge and experience of the holiday let market. We work closely with our clients to ensure we fully understand your requirements for the Holiday Let before we make a recommendation.
Using Simply Mortgages gives you access to all of the various lenders that offer Holiday Let mortgages. Our aim is to provide you with expert strategy and advice. We will ensure we save you both time and money and put you in prime position to start your property investment journey.
It is also important to understand that lenders will usually stipulate a minimum income requirement. The minimum income will vary depending on the lender; it could be anything from £0 to £50,000. The minimum income requirement will also be affected depending on whether or not you are applying in joint or sole name.
Typically, you’ll need to provide the lender with your proof of income if you are employed, or the last two years published accounts or tax calcuations and tax overview assessments if you are self employed.
To discuss your requirements in more detail, use the link below.