Holiday Let Mortgages
Homes let seasonally or all year round
- 80% Loan to Value (LTV) mortgages available
- 100% Loan to Value (LTV) available with additional security
- No minimum income required
- No maximum age requirements
- Personal or Limited Company finance available
- Interest only mortgages available
- Ex-Pat & Foreign national mortgages available
- Second charge finance available
Holiday Let Finance Explained
Holiday Let Finance refers to the type of mortgage or loan used to purchase properties that are intended to be rented out on a short-term basis for vacation or holiday purposes. These properties are typically let to guests for short stays, ranging from a few days to several weeks, and are usually located in popular tourist destinations or areas with high demand for vacation rentals.
Holiday let finance is specifically designed to cater to the needs of property investors who wish to purchase properties for short-term holiday rental. This type of property financing can differ from traditional buy-to-let (BTL) financing, as it comes with unique features that account for the seasonal and fluctuating nature of holiday let income.
Holiday lets are usually marketed through holiday rental websites (such as Airbnb, Booking.com, or Cottages.com) or directly through property management companies.
The location of the property is crucial. Properties in high-demand tourist areas or destinations with a steady stream of visitors (such as coastal regions, popular cities, or near major attractions) are more likely to secure favourable financing.
Higher Rental Yield Potential:
Holiday lets can offer higher rental yields compared to traditional long-term rentals, particularly in popular tourist destinations. This is due to the premium rental prices that can be charged for short stays.
Holiday Let Restrictions
We have access to a range of Holiday Let lenders from different Bank and Building Societies. Building Societies are often more likely to lend on properties with Holiday Let restrictions compared to more traditional lenders.
Rental Income
It is important to be aware certain lenders will base the Rent on either the Holiday Let Rental Figures or instead using the Lower AST figures (used when the property is to be let on an indivudual basis). You will need to know the High, Medium & Low weekly rental income amounts for your Holiday Let. This can easily be obtained from a local Holiday Letting agent.
Limited Company
Did you know you can also buy using a SPV Company which could save you thousands (Tax advise is recommended)