Holiday let mortgage FAQs

Holiday let mortgage FAQs

Want to buy a holiday home to rent out and need a mortgage? Then we’re here to help.   

We’ve compiled a list of FAQs so read on to find out more. 

 

Holiday Lets - what are they?

It's when you buy a property that you intend to rent out as holiday accommodation. 

Buy-to-let vs holiday let mortgage

The difference between a buy-to-let mortgage and a holiday let mortgage is that buy-to-let mortgages are for people who want to borrow money to buy a property that will be rented out long-term.  Holiday lets are becoming a more attractive property investment because they have the potential to be rented out for more money and with regular lettings a bigger income can be generated.

Furnished holidays rentals are treated differently to buy-to-lets when it comes to tax because they are classed as businesses. This means tax relief on mortgage interest can be claimed – but if you own a buy-to-let you can’t do this anymore.

How easy is it to get holiday let mortgage?

Lending criteria for holiday let mortgages is tighter than for buy-to-let or residential mortgages because lenders want to know you can afford the repayments if your property isn’t let out throughout the year. They’ll assess your personal income and expected income from the holiday let. If you have a large mortgage on the home you live in this could impact how much you can borrow on a holiday let mortgage.

Airbnb Mortgages

If you want to rent out your home or holiday let via Airbnb, then you may be best researching Airbnb specific mortgages. It all depends on how you plan to let out your property. 

Will you live in the property and only plan to rent out a room or two to holidaymakers? If yes, then your current mortgage lender may give your permission to do this.  You should always check with them though.  If you’re buying a property intending to rent out the whole place to holidaymakers on a regular basis, then you’ll need a holiday let mortgage.

Do static caravan mortgages exist?

Some lenders will offer a mortgage on a static caravan, especially if you are also buying land with it.

Stamp Duty on holiday lets - what you need to know

If you’re thinking of buying a holiday let, there are some additional charges that must be factored into your costs – Stamp Duty is one of these.  Buying a holiday let falls into the criteria for higher rate Stamp Duty, so you will have to pay an additional 3% of your property purchase price.

Can you help me get a holiday let mortgage?

Absolutely! Contact us on 01246 862911.

 

There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.

Your property may be repossessed if you do not keep up repayments on your mortgage.

Call us on 01246 862911

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We’re here to help - Providing support and guidance whether you a first time buyer, looking to move home, remortgaging with additional borrowing or just looking to secure another competitive mortgage deal

Bishop & Co Mortgage Services is part of one of the UK's leading award winning mortgage and protection brokers


Why Bishop & Co Mortgage Services stands out from the rest:

• We search thousands of mortgage deals to find the right one for our customers' circumstances and needs

• We can provide face to face and telephone advice for our customers

• We can offer flexible appointments times

• We pride ourselves on our professional Premier Mortgage Service, which does not stop when the mortgage has completed

• We continue to offer an ongoing service to our customers by advising them on family, home and income protection so that they are covered against the unexpected

• We provide a full range of lifestyle and income protection cover to protect you from the unexpected

• We feel that keeping in touch is a good thing to do to ensure our customers are kept abreast of developments in the mortgage world

• We help our customers understand the benefits of paying off their mortgage debt as quickly as possible so they can become financially free to enjoy an early retirement!

Because we play by the book we want to tell you that…

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is £499.

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