Holiday Let Mortgage Broker
IF YOU ARE LOOKING TO PURCHASE OR REFINANCE A SHORT TERM LET PROPERTY YOU ARE MOST LIKELY TO NEED HELP FROM A HOLIDAY LET MORTGAGE BROKER
When would I need a holiday let mortgage?
Quite understandably, most people assume that a buy to let mortgage is suitable for many different kinds of investment property, including airbnb or holiday lets.
Unfortunately this is not the case.
Any mortgage broker will confirm that to frequently let a fully furnished property for just short periods, like an airbnb or holiday home, requires a mortgage that permits holiday letting.
Buy to let lenders will be expecting the property to be permanently let out to tenants on a long term basis (via an AST).
The solution is to use a holiday let mortgage.
Why would I need a holiday let mortgage broker?
By using a broker for any mortgage type there are three clear benefits:
- Choice – If you use a whole of market mortgage broker they will have access to over 100 different lenders and banks, giving you the maximum possible choice.
- Time – Finding and applying for a mortgage takes longer than you think. With a broker assisting you the main burden of finding a loan and dealing with the lender is removed.
- Advice – Only by using a qualified broker can you benefit from their years of knowledge and experience. The advice will not just relate to the mortgage but to your own finances, the deposit and perhaps any future plans you may have concerning the property.
A specialist holiday let mortgage broker will be invaluable on all three counts.
There are not that many lenders offering holiday cottage mortgages, maybe around 20. A good number of these are not obvious household names and some do not deal direct with borrowers.
Holiday lets are personally underwritten by lenders, using real people! Due to this and the fact that the requirements for a holiday let are quite unique, a broker will save you many hours of admin and time on the phone.
Advice is crucial when considering purchasing a property. There’s a lot to consider such as:
- Should you purchase via a limited company?
- Is it best to choose interest only?
- Is it OK to buy a property with an occupancy restriction?
- What deposit do you need for a holiday let?
- Can you buy a property with outbuildings and let them out?
- Are expats allowed holiday let mortgages?
- What type of property is acceptable?
- Are holiday let mortgages available in Scotland?
- What is a serviced accommodation mortgage?
- Can you buy a thatched cottage?
- What does fully furnished mean?
A large number of the enquiries we receive are for either mixed-use holiday lets or multi-unit holiday lets, and occasionally both together! These can be quite complex from a lending point of view but also quite lucrative if you are the owner!
A qualified broker who has experience of holiday let finance can walk you through the process and provide guidance along the way.
Holiday rental mortgages are not like normal mortgages and having a specialist working with you will mean that you get the most appropriate financial advice, whilst minimising your stress levels.
Holiday park sites
A holiday park site will have many dozens, or hundreds, of individual holiday lets.
These could be lodges, chalets, pods or static caravans etc. To assist with the initial cost of acquiring a site, you will need the help of a commercial mortgage broker who can arrange competitive holiday park commercial finance.
The next steps
As these types of transactions are often a bit more complicated it is wise to plan ahead and spend some time considering your options before diving in.
Our Holiday Let Guide explains what a holiday let is and touches on the potential tax benefits. Our holiday let mortgage page will run through the mortgage basics.
And when you are ready please let us introduce you to an experienced holiday let mortgage broker.
Limited company mortgages
There is a growing trend to buy and own investment properties via your own limited company.
The limited company needs to be set up correctly for this purpose and is called a Special Purpose Vehicle (SPV).
The main reason that this is happening is tax.
The UK government has made many tax changes that prevent property investors from claiming all of their mortgage interest costs as a business expense.
The way around this is to hold the properties inside your own limited company.
Furnished holiday lets used to have their own special set of tax breaks. Unfortunately, the government has caught up and the FHL status will be abolished in April 2025.
FAQ
Frequently Asked Questions
Do you pay stamp duty on a holiday let?
Yes, if you purchase a buy to let or holiday let property you will pay the standard rate plus the second property levy.
Can I turn a buy to let into a holiday let?
Yes this is possible and many landlords have switched to holiday lets due to the much higher potential rental income.
Can expats buy a holiday let?
Yes. We have helped many expats to buy investment properties in the UK.
Are holiday let mortgages regulated?
True holiday lets are not regulated by the (FCA).
Can I live in my holiday let?
One big advantage of a furnished holiday let is that you can use it for your own holidays. However, you cannot live in it permanently.
A wide range of mortgage options
LOOKING AFTER YOUR BORROWING NEEDS
Buy to let
Competitive buy to let mortgages that include options for SPV borrowing, purchase, remortgage or capital raise.
Holiday Let
Specialist advice for UK holiday let mortgages including Furnished Holiday Lets, Airbnb and mixed use properties. Solutions for purchase, remortgage and develop.
Moving Home
Take the stress out of finding a moving home mortgage by letting our brokers arrange that for you.
Second Homes
A second home mortgage will allow you to purchase a UK holiday home for you and your family to enjoy.
Remortgages
Time to remortgage? Switch your mortgage to a new lender and grab yourself a new interest rate at the same time.
Right to Buy
If you are a local authority tenant and want to buy the property you’re living in using the Right to Buy scheme, we can help you find the best mortgage deal.
Guarantor / JBSP
If you are struggling to qualify for the mortgage you need, or don’t have enough deposit, then perhaps a guarantor mortgage could help.
Just a small selection
of the 120 banks, building societies and specialist lenders that you could have access to.
Only an independent mortgage broker has the ability to search the whole of the market to get the best mortgage for their clients and their individual situation.
First Time Buyer
All the help you need getting onto the property ladder and buying your first home. Including a cracking mortgage deal, sourced just for you.
Equity Release
An equity release lifetime mortgage can provide a tax-free lump sum or ongoing sums of money that you can spend however you wish.
Specialist Mortgages
Multiple streams of income, employment status, size of mortgage or perhaps an unusual property? Let’s get to work…
Mortgage Guides
Our mortgage guides will help you understand and compare different mortgage products whether you’re starting out, moving, remortgaging or buying to let.
Insurance
Making sure you, your home and your mortgage are protected against the unexpected.
Mortgage Calculators
Our easy to use mortgage calculators can help you at every stage of your mortgage journey. From working out what you could borrow to calculating the Stamp Duty.
SPV Mortgages
Rather than buying an investment property in their own name, many investors are now choosing to do this through a Special Purpose Vehicle limited company, or SPV.
