Helping you fund your holiday home
With a boom in ‘staycations’, the demand for holiday lets, and in turn holiday let mortgages, has risen substantially in recent years. Yet holiday let mortgages are quite different to both standard residential mortgages and buy-to-let mortgages. This is mostly thanks to their risk profile -fluctuations in seasonal rental income presents a greater level of risk to lenders.
You can use a holiday let mortgage to buy a home that you plan to let out to tourists and visitors on a short-term basis. But this is different to a mortgage designed for a second home that you want to use yourself and not rent out. Some lenders will allow you personal use of the let, up to a maximum number of days, some may limit the number of holiday lets you’re allowed and some will prevent you from advertising via Air BnB. But others, may have different restrictions.
As different lenders follow different rules, it’s helpful to work with specialists who can establish what you want and need in a product and then work to find the best deal for you.
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 on your circumstances. The fee is up to 1% but a typical fee is £549.