A holiday let mortgage is a loan taken to buy a property that will be let out on a short-term basis to tourists as a business (seasonal Letting). It differs from a holiday home mortgage, where you borrow money to buy a second home that only you will use. It is also different from a buy-to-let mortgage, where you borrow money to buy a property that will be let-out on a long-term basis.
On ‘holiday-let mortgages’, lenders assess the affordability based on the income generated on high, mid and low seasons and your income will also be considered to make sure you are well capable of keeping up with the mortgage payments. This is because, holiday lets are short-term lettings unlike buy-to-let which has a longer-term tenancy.
Since it is a specialist type of ending, number of lenders who lend on Holiday let mortgages are limited.
Whether you are purchasing or re-mortgaging or even looking to release fund from a Holiday-Let property, speak to the expert.
