A holiday let loan is designed for landlords with properties they’d like to let out on a short-term basis as holiday accommodation.
Helping you earn a healthy income
Holiday let mortgages are considered a specialist type of lending, so you won’t find one as easily as a standard mortgage. With some holiday rentals making more in a single week than a traditional long-term rental does in a month, becoming a holiday let landlord could earn you a healthy income.
Since mortgage interest relief was reduced on traditional buy-to-let properties, a holiday let could also offer tax advantages that buy-to-let no longer can.
Holiday Let, Buy to Let - What's the Difference?
A holiday let mortgage is for people who want a property they can rent out on a short-term basis, while buy-to-let mortgages are for those who want to rent over a longer term.
Because the property isn’t let out year-round like a buy-to-let property, it means affordability will be calculated differently to allow the lender to take into account the rise and fall of rental income depending on high or low season.
What Type of Property?
To be able to raise the finance, you will need to be able to show the property can yield a minimum rental income of 145% of interest payments at 5.5% (lenders to vary). Most lenders use a letting agent letter to confirm the potential rental income using an average of the projected low, mid and high season weekly rental yields, typically multiplied by an assumed occupancy level of 26 weeks and divided by 12 months.
As for the type of property… we are renowned for being able to find quirky deals, so don’t let the type of property hold you back!
Why choose The Finance Roome?
You name it, we will try our upmost to find you a deal to suit your needs. We use main stream lenders such as Leeds and Principality, along with other less well known lenders such as Hodge, Market Harborough and Darlington Building Society. We will use whoever we can to find you a great deal.
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