Mortgages for residential properties being operated as holiday lets.
Holiday Let Mortgages are available for refinancing or for purchasing new properties.
Products are available for first-time holiday let operators. Typically, however, 12 months track record is required to be demonstrated by either the borrower or the property itself.
As with Standard B2L Mortgages, it is a single loan per property.
Expect loan to values (LTV’s) to be capped at 75% and also expect interest rates to range from approximately 3.50-4.50%. 2, 3 and 5 year fixed rates are available.
Loan affordability is based on measures of gross and net income. Net income is derived after deducting operating costs.
Mortgages are offered subject to valuation and completion of security. Lenders usually insist on the use of pre-accredited solicitors and a valuer which forms part of their pre-approved panel.
Acceptable customer types include: Sole Trader, Partnership, Limited Company (Ltd) or Limited Liability Partnership (LLP).
This is a high growth area across the UK and new lenders are entering the market regularly.
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