HOLIDAY LETS
A Holiday Let Mortgage is designed for purchasing or refinancing properties rented out short-term to tourists or travellers. Unlike standard residential mortgages, it accounts for the fluctuating income from holiday rentals.
This type of mortgage requires the borrower to provide evidence of potential rental income and usually demands a higher deposit. Lenders typically assess these loans based on rental projections rather than the borrower's income, making them ideal for investors in tourist heavy areas.
WHAT IS A HOLIDAY LET MORTGAGE?
NO UPFRONT FEES
NO BROKER FEES
Key benefits of Holiday Let Mortgages:
ELIGIBILITY CRITERIA
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Ownership of primary residence
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Good credit history
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Stable income proof
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Relevant letting experience
LOAN FEATURES
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Competitive interest rates
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Fixed or variable terms
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Interest-only options available
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Loan-to-value ratios vary
PROPERTY REQUIREMENTS
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Must meet safety standards
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Suitable for holiday letting
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Good location and condition
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Adequate insurance coverage
Experienced. Trustworthy. Tailored.
Clever Commercial is an award-winning brokerage with over 30 years expertise in providing bespoke property financing solutions. Competitive rates, flexible criteria, and unrivalled service. Build your future - partner with us.
WHY CHOOSE CLEVER COMMERCIAL?
FREQUENTLY ASKED QUESTIONS
What is a Holiday Let Mortgage?
A holiday let mortgage is specifically designed for purchasing properties that will be rented out to holidaymakers on a short-term basis. Unlike standard mortgages, it accounts for variable rental income and seasonal occupancy rates.
Can I use a Holiday Let Mortgage for any property?
No, holiday let mortgages are typically restricted to properties that meet specific criteria, like location in a popular tourist area, suitability for short-term rentals, and adherence to local holiday letting regulations.
How does the lending criteria differ from standard mortgages?
Lenders usually consider potential rental income, not just the borrower's income, when assessing affordability. There may also be higher deposit requirements and interest rates due to the perceived increased risk of short-term letting.
What should I consider before taking out a Holiday Let Mortgage?
Consider the property's location and potential for consistent rental demand, your ability to manage vacancy periods, and the impact of local regulations on holiday lets. Also, factor in higher running costs and maintenance expenses associated with short-term rentals.