Holiday Home Mortgage
Our Holiday Home Mortgage Service
Special features of what we offer include:
- Whole of market service - we work with UK lenders who lend on holiday home properties
- 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 on holiday homes call our mortgage team on 0117 403 4474 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.
How do I get a Holiday Home Mortgage ?
While more difficult to come by than a mortgage for your main residence, or a standard buy to let there are a selection of providers of mortgages for holiday home. However when looking for a holiday home mortgage what is available to you will be affected by whether you are intending on using the holiday property exclusively for your own use or if you intend, at least for a portion of the year to rent it out to holiday makers.
If you intend to keep the holiday home exclusively for your own use, then the application process is relatively similar to applying for a property that would be your main residence. The key difference is that if you are currently making repayments on then when the lender calculates your affordability they will factor in how much your existing mortgage payments are each month.
If you however intend to let the property out to holiday makers for even a small portion of the year then you will need a specialist holiday let mortgage, a standard buy to let mortgage will not be suitable as they require properties to be let on assured short hold tenancy which would not be appropriate when renting to holiday makers.
These specialist holiday let mortgage are less commonly available with the larger high street lenders, as this kind of investment is considered to be of higher risk than a traditional buy to let property, as occupation can be rather sporadic and their van be a considerable variance in rental value between the high and low season.
Holiday let mortgages are offered by a range of building societies and specialist lenders, they can be somewhat more complicated than residential, or standard buy to let finance however. The specific terms and conditions of each product can vary considerably for example; some providers may only offer holiday let mortgages for properties in certain geographical areas of the United Kingdom, others may limit exactly how many days of the year the property can be let out for.
As with buy to let mortgages the interest rates and arrangement fees you can expect to pay for this type of finance than you would expect with a standard residential mortgage and you may be required to put down a larger deposit, typically requiring a minimum deposit size of 20-30%.
When calculating your affordability a lender may ask for a letter from a reputed holiday company estimating the monthly rental yield of the property in both high and low season, requiring it to average at least 125% of what your mortgage payments would be, they may also factor in any costs associated with the management and maintenance of a holiday home such as cleaning and advertising.
Whether you want to buy a holiday home for personal use or as an investment, you may benefit from speaking to an independent mortgage adviser, who in addition to offering you impartial advice, can use search the whole of the mortgage market on your behalf, to try and find the best deal.
For more information on getting a mortgage or remortgaging on a holiday home property call us on 0117 403 4474 or Request a callback.