Can I Get A Mortgage For A Holiday Home

No matter if you’re looking for a rural retreat or a house on the beach, you may be wondering if you can get a mortgage for a holiday home. While the answer is yes, the process is not quite as straightforward as getting a residential mortgage for your main residence or even for a buy to let, but there are a few specialist mortgage lenders out there to help fund the purchase of a holiday home.

Investment Property

If you’re intending to purchase a holiday home as an investment property you will find that many of the larger lenders do not have a suitable product, requiring all buy to let properties to work under an ‘assured short hold tenancy’ agreement, which is not suitable for letting to holidaymakers, there is also an inherent higher level of risk due to the fact that occupation can be sporadic and the rental yield of the property van fluctuate considerably at different times of the year.

Specialist Lenders

There is however a range of specialist mortgage products from certain building societies as well as specialist lenders specifically designed for holiday homes. It may however be helpful to consult an independent mortgage adviser to help you secure the right mortgage for a holiday home. A good whole of market mortgage adviser can not only offer you impartial advice but they can use their expert knowledge to search across the whole of the mortgage market to fish out the most suitable products for you.

Holiday home mortgages can be particularly complicated, as they can vary considerably between lenders for instance some will only be willing to offer finance for properties located within certain geographical areas in the United Kingdom. Others may place a limit on the maximum number of days per year the property can actually be let out as a holiday home, possibly making some options only suitable if you primarily want the property for your personal use.

They may also need the borrower to fit specific criteria such as having a minimum income of £20,000, already being a homeowner , you may also be required to put down a deposit of at least 25-30% of the property value.

Affordability Criteria

Often with holiday let mortgages, affordability is calculated from potential rental yield, as such you may be asked to supply a letter from a reputable holiday company estimating what the rental income of the property could be in both the high and low season, with the average yield per month being at least 125% of the monthly mortgage payments, lenders may also factor in to their affordability calculation things such as the inherent costs involved with operating a holiday let such as; cleaning, maintenance and advertising.

If you think you may benefit from speaking to a mortgage adviser, you can fill in our online contact form to request a call-back for a free initial consultation from a Fair Mortgages adviser, or you can get in touch with us directly by calling: 0117 403 4474

Our Holiday Home Mortgage Service

Use our specialist broker team to raise capital for home improvements:

• Whole of market service - we work with UK lenders who will lend for holiday home purposes

• Access to leading market mortgage rates

• Access to exclusive loan deals not available on high street

• Fast turnaround - speak to us today if you need to move quickly

• Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions

To investigate your mortgage options for raising finance for a holiday home call our mortgage team or fill in our call back form.

"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support. 

As your mortgage is such an important transaction, good advice is imperative.