Holiday let mortgages
Things to consider when buying a holiday let
Mortgages for holiday let
With the ability to earn an income, as well as having somewhere to visit yourself, owning a holiday home has become an attractive option for many would be and seasoned property investors.
The recent surge has brought more lenders to the market. However, as most of the mainstream lenders do not typically lend on holiday lets, getting a mortgage without a broker’s help can be difficult.
A holiday let mortgage broker like Fosters Financial knows each lender’s criteria and can therefore help you secure the best possible mortgage for your needs. If they find a suitable deal that you wish to apply for, they will also manage the entire process to remove the stress and hassle from you.
Interested in discussing your options? Get in touch or request a free quote from one of our friendly advisors here today!
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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Holiday let mortgage criteria
To ascertain what income could be used to support borrowing, lenders will look at the property’s weekly rental yields during the high, mid, and low season and take an average of those across a 40- or 46-week period. Most holiday let mortgage lenders will also require a minimum 25% deposit.
As the income you earn on a rental property is taxable, we recommend seeking independent advice from someone like your accountant, before purchasing a holiday let property.
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Stamp duty on holiday lets
If you already own a property, you will need to pay a 3% surcharge on top of the normal Stamp Duty Land Tax (SDLT) rates for your holiday let.
The Financial Conduct Authority does not regulate most buy to let mortgages.