Holiday Let Mortgages
Specialist holiday let mortgage advisory by property professionals for property professionals.
- Access to 75 lenders
- 75
- Borrow up to 95% LTV*
- 95%
- Competitive interest rates from 3.25% pa* (subject to change)
- 3.25% pa
* Subject to lender criteria, individual circumstances and underwriting / valuation assessment.
How we can help with your holiday let mortgage
We work with a wide range of specialist lenders who can offer you a competitive quote for your holiday let mortgage.
We also offer expert advice with the process of choosing and applying for a holiday let mortgage:
- Help with switching from a residential or buy-to-let mortgage to a holiday let mortgage
- Support if you need to remortgage your holiday let
- Advice for first-time buyers of holiday lets
- Help with creating a limited company or SPV.
Get in touch
To speak to a mortgage advisor about holiday let mortgages completely free of charge, call us today or use the contact form and an advisor from our team will get back to you shortly to discuss your requirements.
Make an enquiry
Holiday lets: the opportunity
Buying a holiday let in a popular tourist location can be a superb investment option and a source of consistent income – as well as providing you with a holiday home that you can use yourself, free of charge.
With the rise of find-a-property sites like Airbnb, plus the increased hassle of travelling abroad during the pandemic, the UK-based ‘staycation’ is hugely popular right now, and it’s a seller’s market for holiday lets.
On top of that, recent tax changes have made holiday lets a very attractive alternative to traditional buy-to-let properties – potentially even more profitable. With demand for holiday lets so strong, you can generate far more from your letting charges than you would from traditional letting.
Overall, there’s never been a better time to get into the vibrant holiday let market.
Getting the right holiday let mortgage
However, buying and renting out holiday lets can be a minefield, particularly if you’re new to the buy-to-let market. Mistakes can be expensive, so you want to get your holiday let purchase right first time. And for most buyers, the right holiday let mortgage is the key to making the whole project work financially.
Ideally, you’re looking for your rental income to cover your mortgage repayments or interest – at least during peak season. That way, all you have to do is keep the bookings coming in, knowing that the financial side is taken care of.
Do I need a specialist holiday let mortgage?
You can’t use a regular residential, buy-to-let or second-home mortgage for your holiday letting property. It must be a mortgage specially designed for holiday lets.
Typically, you’ll be able to get a holiday let mortgage for up to 80% of the property’s value. (This is known as a ‘loan to value’ or ‘LTV’ ratio of 80%.)
The amount you can borrow will also be based on the income that the property is likely to generate.
Holiday let mortgages are normally for two-, three- or five-year terms. Some lenders have different rules for older borrowers, while others aren’t concerned about your age.
What qualifies as a holiday let?
In order to be considered as a holiday let and qualify for mortgage tax relief, your property has to be available to let for at least 210 days per year, and in use for at least 105 of those days.
That does place some obligations on you as a landlord – but you don’t have to let your property for every day of the season, and the rules still leave plenty of time when you can enjoy the property yourself.
Holiday let mortgages: questions to consider
- How much income could your holiday let generate?
- Will you let the property to holidaymakers directly, or use a platform like Airbnb?
- Are you switching from another type of mortgage to a buy-to-let mortgage?
- Will you set up a company or special purpose vehicle (SPV) to collect the rent on your holiday let?
- Will your holiday let be part of a property portfolio?
- Do you want a repayment or interest-only mortgage?
Buy to Let Mortgage Calculator
Please use our buy to let loan calculator to work out what you could potentially borrow!
This will be dependent on the security offered by the property and the rental income. Interest rates on the loan will be very much dependent on your individual circumstances and lender criteria - please contact a broker to discuss further.
Send this indicative quote directly to Teal Finance and we'll continue from there, email it to yourself or whom it may concern.
Email this quotation
Send to broker
| Indicative quotation | |
|---|---|
| Total Security Value [1] | £250,000.00 |
| Monthly rental [2] | £1,000.00 |
| Loan Period [3] | 24 months |
| Applicant type | Individual |
| Maximum Net Loan Amount [4] | £150,470.22 |
Send this indicative quote directly to Teal Finance and we'll continue from there, email it to yourself or whom it may concern.
Email this quotation
Send to broker
Notes:
- Total value of the property the loan is secured against
- The monthly rental income from the property
- The duration of the loan
- The maximum net loan that could be borrowed based on these figures (indicative)
Please note, this is an indicative calculator. The figures displayed are subject to the lender's approval and due diligence.
Why choose us?
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Access to more lenders
- Access to a wide range of specialist lenders and the experience to get you a highly competitive rate.
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Property professionals
- We specialise in bridging loan and development finance cases so you can rely on an innovatively structured deal.
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Fast, expert service
- We liaise with all involved on your behalf to ensure deadlines are met and drawdown is made in a timely manner.
We work closely with specialist lenders, private funders, high street lenders and challenger banks and we know how to put together the best bespoke deal.