Holiday Let Mortgages
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Holiday let mortgage experts.
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Speak to UsHoliday Let Mortgages Specialist
Our expert team have been helping clients find the right Holiday Let Mortgage since 2015 and we're here to help you, too!
We'll work closely with you to help you achieve your dream of a holiday let cottage, house, flat or mansion.
You might want to buy a second home to share with friends, and family. Or perhaps you'd like to let it out and retire there later… There are many ways to enjoy a holiday home. Our experts will help you find the right mortgage for your needs.
Holiday Let Mortgages Calculator
Just complete the quick form below to ask Holly our AI Assistant to scan the market and give you an indication of what your Holiday Let Mortgage could look like.
How we can help you
Discovering what type of mortgage you need to fit the property you love is a real eye-opener. Our expert mortgage brokers know the holiday let mortgage market intimately and always aim to provide a bespoke service to every client. We'll be with you every step of way and help you to achieve your dream.
Everyone is different, and getting any kind of mortgage can feel overwhelming at times; a bit like climbing Everest. So, we're careful to explain what's needed to work out how much you can borrow for a holiday let and how the process works.
We'll advise you on what documentation will be required and will handle the whole application process for you. With a holiday let mortgage there's a lot to think about - no worries! Our experts will guide you up that mountain because we've climbed it many times before.
Working hard to understand your situation is what we do. And as part of that, we're able to explore different lenders to find the mortgage that suits you. Furthermore, we can put you in touch with specialists such as holiday lettings agents so that you'll find that dealing with rental income projections, estate agents, solicitors, and conveyancers is simplified and understandable.
Holiday homes are a place to relax, and our aim is to make the mortgage process just as stress-free.
There’s a misconception that arranging holiday home mortgages is a difficult task, however, it can be quite straightforward if you know what you’re doing. That said, there are a few more considerations than with a standard residential mortgage. House & Holiday Home Mortgages can support you through every step of the process, from finding the right lender, to choosing the best type of mortgage for your residential holiday home in the UK.
UK residential holiday home mortgages
When buying a holiday home in the UK, there are several potential incentives for wanting to do it. If you do not intend to rent the property out, you want another residential mortgage for the holiday home. This is largely the same as taking out a traditional mortgage, like you did for your main home of residence.
The main difference between this type of mortgage and a standard mortgage on your primary home is that the lenders will employ a stricter assessment of your finances. They need to know that you are in a position to meet the repayment plans on both mortgages.
It should also be noted that a large deposit will be needed. It'll almost certainly be at least 15%, but many lenders set the threshold to 25%. For this reason, many homeowners may consider re-mortgaging their main home to free up the funds needed to take on the holiday home mortgage.
When you use this type of residential mortgage, there are limitations on how the holiday home can be utilised. Otherwise, you could face financial and legal repercussions. HHH Mortgages can advise you on all aspects of the legal implications while also supporting you through analysing lenders and offers.
What's special about a Holiday Let Mortgage?
A Holiday Let Mortgage is designed for buying a property you’d like to rent out to holiday makers.
When it comes to mortgages, there’s a big difference between a holiday home and a holiday let mortgage. If you’d like your second home to be a bolt-hole for you and your family you’ll need to apply for a Holiday Home mortgage.
And don’t forget: a buy-to-let property isn’t the same as a holiday let property. It’s another animal entirely! Buy-to-let is when you want to rent out a property to tenants on a long-term basis.
You could use your holiday let property yourself, but in order to qualify for a Holiday Let mortgage you will need to make the property available for holiday makers to rent. It should be fully furnished and available for a minimum of 210 days every year.
You can’t buy a property to let out to holiday makers or advertise on Airbnb using a standard home buyer mortgage, a First Time Buyer mortgage or a Buy to Let mortgage.
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Call our mortgage experts today on
01453 887179
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UK Holiday Let Mortgages
Owning a holiday home in the UK is a great way to add a little luxury to your life while building your assets for the long-haul. However, it can also become a revenue generator thanks to short-term rentals. Given that this is a form of investment property; you will need a dedicated holiday let mortgage.
While this type of niche mortgage is often underwritten on an individual basis, they are available from banks and financial institutes across the UK. You must avoid taking a standard buy-to-let mortgage because holiday tenants do not necessarily meet the assured short-hold tenancy criteria.
When taking out holiday home or holiday cottage mortgages, you will need a deposit of at least 25%, although there is a lender who will consider a 20% deposit. Meanwhile, due to the seasonal fluctuation of revenue, the lender will use stringent financial assessments. The lender will make their affordability assessment based on averaging how the property rents out during high, medium, and low seasons, and the different rates it can achieve.
As a typical example, if the average rental over a 30-week period is £800 per week, that would typically mean you could borrow up to around £295,000, provided of course you have a sufficient deposit and meet the lender’s other criteria.
If it sounds complicated, don’t worry. As your go-to holiday home mortgage advisor, we are able to talk you through this and help you understand what level or mortgage is achievable based on those figures.
Finally, you should be aware that the associated fees and interest rates holiday home or holiday cottage mortgages can be a little higher than traditional buy-to-let. Lenders view holiday lets differently because they’ll have a number of guests staying in the property throughout the year. When handled correctly, though, they can be a wonderful asset for you.
Holiday Home Mortgages for overseas properties
Since the introduction of budget airlines, many people consider the prospect of buying a residential holiday home abroad. While this can require a little additional effort, you will have two main options at your disposal; either use a UK lender, or use a bank/lender in the country where you plan to buy.
When using UK lenders, it’s probable that holiday home mortgage products will only be offered by banks that already have offices and a presence in the destination country. This does limit your options, but finding a lender for properties in popular markets like Spain, France, or Italy, should not prove too difficult.
For non-UK lenders, the most likely solution is to partner with a broker in the country of the holiday home. While the exact arrangements do vary from country to country, you will almost certainly need a bigger deposit when taking this path.
As a UK-based holiday home mortgage broker, we don’t arrange mortgages for foreign property ourselves, however, do have some great partners that we’ll happily put you in touch with if that’s what you’re looking for
Other considerations surrounding the holiday home mortgage
When buying a holiday home or holiday let, you must also consider the outside factors. Stamp Duty is perhaps the most important, as you will face a 3% surcharge. So, if you’re buying a property between £125,001-£250,000, the usual 2% stamp duty charge becomes 5%. It’s very important that you fully understand what stamp duty will be due, and your solicitor will help you with this.
There are several other costs to consider during the purchase, such as Insurance, Mortgage fees and maintenance bills. We’ve got some amazing partners that can help you with all your needs. Meanwhile, if the holiday home is located abroad, currency exchange rates require your attention too..
Nonetheless, getting a holiday home mortgages or a holiday let mortgage is still an option that can bring many rewards. To find out more and take the first steps, give House & Holiday Home Mortgages a call today.
Third, fourth or fifth property mortgages
If you have the finances and the incentive to buy multiple homes, there is nothing to stop you from doing it. Technically speaking, UK laws allow you to own as many homes as you like. Naturally, though, the more you buy, the harder it can be to secure finance.
Aside from being required to show lenders that you have the capital to meet repayment terms on all properties, you must also prove that the properties are all for residential purposes. You cannot buy a third or fourth home on a residential mortgage if you intend to rent it out. If this is your plan, you’ll need a buy-to-let contract. Again, it is possible to own multiple properties this way, and it opens up the potential for portfolio mortgages to finance your investments.
At HHH Mortgages, we can help you follow the right path for your second mortgage as well as any subsequent properties that follow. Simply get in touch with us today to find out more about how we can help.
Providing all the first time homebuyer advice you need
We know that buying your first home is a huge deal and often the whole process of getting a mortgage is a completely alien one – not to mention overwhelming. That’s why we’re here to guide you through the first time homebuyer process and ensure you’re confident the whole way.
We provide you with all the first time buyer advice you need, and ensure you understand absolutely everything.
To provide some starting help for the first time homebuyer, we’ve set out below the main costs you may incur when purchasing a property and securing a mortgage. This is by no means every cost but it covers the main ones to budget for.
Stamp Duty
Government tax payable when you complete your purchase. The amount payable is based on the purchase price. For the latest rates please see the HMRC website.
Solicitors Fees
This amount will vary from case to case but for a single purchase typical legal fees including disbursements may be around £700 – £1000.
Contact Craig:
01225 531 888 | craig.bryce@hhhmortgages.com
Monday – Friday 9am – 5pm
I moved to the south-west in 2019 and my family and I absolutely love living near Bath. Being near to the sea and with fabulous countryside on our doorstep we’re able to give our children a wonderful childhood, and I love making that a reality for my clients, too.
I qualified as a mortgage broker in 2018 and joined HHH Mortgages in 2019, having spent many years working in insurance. I pride myself on being able to help every one of my clients find the right mortgage for them, no matter what their circumstances and always go the extra mile to help. I can advise on the insurances you should consider and have a huge network of trusted contacts that can help my clients with almost every issue they need to overcome including architects, solicitors, builders, accountants, plumbers, financial advisers, estate agents, electricians and even pest controllers!
Over-coming every challenge
Not every client has a great credit history or a straightforward set of circumstances, but my experience has taught me there is normally a solution to every challenge; it’s my job to find it! Quite often I deal with clients other brokers have turned away, but I believe everyone deserves a home of their own and my experience means I do my very best to help.
It is important to make sure that the commitment each client is making is affordable and my expertise means I can provide the right advice on a suitable mortgage and relevant insurance so they know what the future costs could be once the purchase is complete.
Local knowledge and expert advice that can help
My huge network of local suppliers and advisors means I can help every client find the right suppliers and advice, every step of the way. Whether you need a builder, architect, solicitor or estate agent, or would simply like to discuss an insurance I can’t arrange with a broker, I can point you in the right direction.
Whether you are buying your first or twenty first home, I make sure to explain everything at every step of the buying process so that my clients understand what is expected of them and what the next steps are. This helps everyone feel confident and comfortable with the process and helps to make the process a smooth one.
Building trusted relationships
Whether it’s a first time mortgage, a buy to let or holiday home mortgage I work hard to help all of my clients. Around 70% of my new clients are referred to me by existing clients and I think that goes to show how seriously I take my work for each client. Through building trusting relationships I can help my clients fulfil their dream of living in this beautiful part of the world, and that is special!
I look forward to meeting you!
Here to help you,
wherever you are
Our mission is simple. We’re here to help you sort out the finance you need to buy property. We work to get the right deal for you and your family so that you can get the home you want.
But we go one step further.
We’re passionate about making the process as simple and hassle-free as possible for you. To do this, we seek to always deliver a first-class service that you’ll tell your friends about.
We’ll meet you face to face. We’ll chat over the phone. However it best suits you, we’re here to help
We're here to help
Call our mortgage experts today on
01453 887179
Alternatively, complete the form and someone will get back to you.
Failure to keep up with your mortgage repayments can end up in your home being repossessed, but as a leading mortgage broker in the UK, we have helped countless people like you secure great deals with realistic repayment plans.
Our mortgage broker consultancy fees are:
- Approx. £495 for residential cases
- Up to £695 for specialist, complex, sub-prime cases, and equity release cases.
Need help? One of our experts will speak with you today