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Holiday Let Mortgages

Because we do like to be beside the seaside…

It’s a fact that more of us are enjoying the Great British staycation than ever before, with the Association of British Travel Agents recently reporting that 56 per cent of Brits planned at least one domestic getaway.

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Holiday let mortgage

What is a holiday let mortgage?

A holiday let mortgage differs from a holiday home mortgage which allows you to borrow money to purchase a second home for private use. 

In contrast, a holiday let mortgage is designed for people looking to borrow money to buy a property that will be let out on a short-term basis to tourists, as a business. 

With high demand for holiday lets, mortgage lenders are evolving new tailored products to meet changing needs and it is an area with continued and anticipated growth.

Additionally, with changes to the tax relief and stamp duty requirements surrounding rental property, many landlords are now considering the holiday let market as an alternative to buy-to-let investment.

HMRC specifies that a property must be available to let for at least 210 days and be in use for at least 105 of these to qualify for mortgage tax relief. This still leaves 22 weeks of the year when you can enjoy a holiday let property yourself as a second home, depending on the mortgage lender.

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    How do holiday let mortgages work?

    You cannot use a residential or buy-to-let mortgage for a short-term holiday let property. Similarly, a holiday let mortgage differs from a holiday home mortgage where you borrow money to buy a second home that only you will use.
    However, they do work in a similar way to buy-to-let mortgages for long-term rental.

    How profitable is a holiday let?

    Given the rise in demand for holiday let properties and tax benefits for landlords, the market is predicted to grow. A recent survey by one lender, Cambridge & Counties Bank, which offers specialised lending, revealed that many mortgage brokers believe holiday lets offer better yields than traditional buy-to-lets.

    Second Estates has reported that the East of England will see returns in the region of 16 per cent. Typically, you can rent out a holiday let for far more than you can rent a normal buy-to-let property and therefore generate a much larger income from your property investment.

    “Neil was extremely quick and efficient at finding a mortgage for our buy-to-let mortgage. He could not have acted faster when dealing with all the paperwork, and was helpful and informative about what was needed. We highly recommend Neil and N M Finance.”

    – Roger and Meg H (Read more Google Reviews)

    Why use us for your holiday let mortgage?

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    We have first hand experience

    As most of our mortgage advisors are landlords themselves, not only can they find you the best lender and rates, they can provide their first-hand advice. Because we know that you would rather speak to someone who has ‘been there and done that’.

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    Access the best deals and everything in between

    Holiday let mortgages are specialist and often holiday let lenders can only be accessed through a mortgage broker. We know all the smaller specialist lenders, the medium sized ones and the big boys, so we can help you to choose the one that’s right for you. No panel,  whole of market and yes, that does mean all of them.

    Get in Touch and Tell Us Your Plans

    Whether you are a first-time investor or a portfolio landlord, NM Finance has the knowledge and expertise to ensure your property investment is financed on the best terms and delivers strong ROI. Call us or request a callback to discuss your buy-to-let mortgage or holiday let mortgage.

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