Holiday Let Mortgage Providers

Our Holiday Let Mortgage Service - helping you make the right decision

"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.

Our independent mortgage broker service provides: 

• FREE initial mortgage consultation

• Access to exclusive mortgage deals not available on the high street

• A dedicated mortgage adviser and case handler to deal with your mortgage from enquiry to completion

Holiday Let Mortgage Providers

If you’re thinking of getting a mortgage to purchase a holiday property, which you intend let out for even part of the year, you will need a specific holiday let mortgage as many regular residential or buy to let mortgages will not be suitable for this application.

This type of mortgage is less commonly available among the bigger lenders than buy to let products.

But there are still a selection of holiday let mortgage providers you may wish to consider.

About holiday let mortgages

Many buy to let mortgages have a condition that the property is let to tenants on an Assured Shorthold Tenancy, which is not usually suitable for letting to holidaymakers as they are likely going to want to rent the property on a weekly or nightly basis.

However are a range of specialist products from certain lenders designed to be used for holiday homes.

As the amount of time a holiday home is occupied is typically less consistent than with a buy to let property and the fact that the rental yield of a holiday property can fluctuate between the high and slow seasons, means that lenders perceive holiday let’s as being of a higher lending risk. And as such these types of mortgage may be more expensive than comparable mortgages of other types.

Getting a holiday let mortgage

When looking for a holiday-let mortgage, it can be wise to shop around providers as the specific stipulations of the mortgage may vary considerably between providers, so it is important to find one that fits your needs.

For example; some lenders may only offer holiday let mortgages for properties within certain areas of the UK such as in the South West of England and Wales.

Other stipulations may be a restriction on the maximum number of weeks per year that the property can be let out to holiday makers.

• Affordability: The affordability of a mortgage on a holiday property will be assessed upon its estimated rental yield, with lenders tending to require the rental yield of the property to be at least 125% of what the mortgage payments would be. Some lenders may also factor in to this calculation the running costs of operating a holiday let such as cleaning, maintenance and advertising. Lenders may require applicants to supply a letter from a holiday agent estimating the holiday rental value of the property to confirm this.

• Deposit: Deposits required for holiday let mortgages are typically larger than residential mortgages and some lenders could have a minimum deposit requirement of around 25-30% of the property value.

• Other requirements: Lenders may have certain additional requirements such as that their borrowers are already existing homeowners or have a minimum income requirement.

Mortgage adviser

People looking to secure finance on a holiday home may benefit from using the services of an independent mortgage adviser, one that offers a whole-of-market service will be able to use their knowledge of the industry to search across different lenders to try and find the most suitable products for their clients.

To find out if Fair Mortgages could help you, you can fill in the online contact form to request a call-back from a Fair Mortgages Adviser who can offer a free initial consultation. Alternatively call directly on: 0117 403 4474