Holiday Let Mortgages

Buying a property to use as a holiday let can be a worthwhile investment as it has some attractive benefits. But when it comes to looking for a holiday let mortgage, you might be met with difficulty. Not because there is a lack of holiday let mortgages available, as there’s plenty. But because of the nature of holiday lets and because of this, you’ll find that a lot of traditional banks and building societies are less likely to offer holiday let mortgages.

Why Might You Struggle To Obtain A Holiday Let Mortgage?

If a holiday let mortgage is what you’re looking for, you might struggle to do it alone. Lenders may offer the standard buy to let mortgages, but holiday lets are a different type of risk for lenders to deal with.

This is because holiday lets are not a guaranteed source of income. You aren’t guaranteed to have people renting out your property all year round due to peak and low seasons, so your rental income is likely to fluctuate.

However, with a standard buy to let mortgage, you might only need to find one tenant to move in who will commit to staying for a year. As this provides more reassurance to the lender that you will be able to repay the mortgage.

If you are looking for a holiday let mortgage, you can expect to face extra checks that establish whether you can keep up with repayments and you might need to make it known whether or not you will have the home rented out all the time.

Consequently, you will probably need a larger deposit than you would with any standard mortgage. You should aim to raise a deposit of around 25% of the value of the home to get a holiday let mortgage. but anything around the 40% mark is likely to improve your chances of being approved for the mortgage.

If you need to raise extra cash for the deposit, you could look into getting a remortgage deal on your current property. You can release equity in your current home to put towards the deposit for a second home mortgage and use it for your holiday property.

Kiran
Kiran
2024-01-15
Cannot recommend Regal Finance enough! Matthew and Kirsti were amazing and completely took the stress out of the process. They were always available to answer questions and guide us through everything. I found they had access to a wider range of products than other advisors I had used in the past. I will be recommending Regal Finance Group to everyone I know!
L Fowler
L Fowler
2024-01-04
Matthew and his team have gone above and beyond to help us with our mortgage. As first time buyers we decided to seek advice from a mortgage advisor. After having an offer accepted on a house we needed some support with the mortgage fairly quickly and Matthew managed to fit us in out of usual hours to suit us. We had a very detailed call with him and all our questions were answered. From this point onwards Kirsti managed our application and the whole process was fast and effortless as they managed everything. We made the best decision using Regal finance. If you choose to go with Regal you’ll be in good hands.
Jamie Wells
Jamie Wells
2024-01-04
I can’t recommend regal finance group enough. Kirsti and Matthew have been amazing. They are so quick to respond and the advice they give has been so helpful. Don’t hesitate to get in contact if you need a mortgage. Thanks Jamie and Lauren
Sam Powell
Sam Powell
2023-12-07
Excellent service and company
Erion Andoni
Erion Andoni
2023-10-10
I recently had the pleasure of working with Rick to secure a mortgage for my new home and a buy-to-let mortgage for my existing property. Rick's assistance was truly invaluable throughout the entire process. Rick effortlessly guided me through both processes, making sure every detail was covered. His commitment to assist and his availability and willingness to answer my questions, no matter how small was exemplary. Rick's expertise in mortgages was impressive. He made a complex process seem straightforward. I wholeheartedly recommend Rick as a mortgage broker. He is not only skilled but also genuinely cares about his clients' success.
Yolanda
Yolanda
2023-09-27
I did my due dilligence looking at various brokers and was pleased to have received excellent help and direction from the Regal Finance Group. From the lead advisor to the administration team we were kept updated and communication was steady. Our situation was not an easy one for the team but they persevered and assisted us well.
Peter Nelson
Peter Nelson
2023-08-22
We've had a great experience with Regal Finance Group both getting our mortgage initially and now re-mortgaging a few years later. Particulalry during the current turbulent market we really appreciated how calm they made us feel by presenting our options clearly and answering all of our questions. We'd highly recommend them, they have really taken the stress out of mortages!
samantha sothcott
samantha sothcott
2023-08-02
Matthew and Kirsti at Regal Finance have been absolutely brilliant through a difficult remortgage. Always available to talk through anything and explain processes when needed. I would definitely recommend their services and thank them for their guidance.
amy evans
amy evans
2023-08-01
Kirsti and Matt were super helpful and always at the end of the phone to explain everything in detail to me. They saved us a lot of money and had great contacts to use and everyone worked together really well to get it over the line in time. Would highly recommend
izzy P
izzy P
2023-06-15
Can not recommend enough! Matthew and his team gave me the most amazing support throughout my process. Buying a property for the first time can be daunting and Matthew gave me fantastic advice and talked me through everything in as much detail as I needed.

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Why Get A Holiday Let Mortgage

Mortgages for holiday lets can be a significant property investment, allowing you to own a home that will be used throughout the year by tourists. Holiday lets are different to a buy to let investment as holiday lets will most likely have multiple occupants throughout the year, each staying for a short period of time for their holidays.

However, if you are looking to stay in the property yourself and use it as a holiday home from time to time, then the criteria for the mortgage application is likely to be a little stricter than if you are just letting it out constantly. In this instance, you might be better off getting a standard mortgage.

Buying a holiday let property is an investment that requires a lot of commitment and perseverance but if you are willing to put in the time and effort, the rewards can be significant. Did you know that if you manage to get a mortgage for your holiday rental you could benefit from tax relief?

‘Why?’ you may be thinking, well, your holiday let can be seen as a business venture if the property is fully furnished and run like a holiday rental home. So you could be eligible for receiving tax relief on the mortgage interest payments. Also, just like any other trading business, any losses incurred can be offset against future profits.

In order to qualify for tax relief benefits, your holiday property needs to be available to let for less than two-thirds of the year and have been rented out for around one-third of the year. So even if you wanted to use the home as your own holiday destination for a few weeks in a year, you could still do that and qualify for the holiday property letting tax relief.

Things To Consider with Holiday Mortgage Lets

When it comes to holiday letting, you are far less likely to get approval for a mortgage to buy a property abroad as lenders see it as too much of a risk. This is because it can be much harder to find holiday occupants to regularly rent your property and provide you with the necessary rental income. Also, additional risk is added due to fluctuating foreign currencies. There are other risks involved too, such as the unfamiliarity with the property market and relevant laws in that country.

Even when applying for a holiday let mortgage in the UK, there are still extra checks and tighter rules. However, we can help you get your ideal holiday mortgage as we have the relevant knowledge of the market and the expertise to find you the best deal on your mortgage.

Want to find out more? All you need to do is give our friendly team a call and we’ll be more than happy to help you find the best mortgage for your needs.

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Step 1

Complete an enquiry form and an advisor will call you back.

Two

Step 2

Send us the documents we need.

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Receive a Decision in Principle from one of our lending panel.

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