Holiday Let mortgage specialists

December 2, 2021
With staycations becoming more popular each year, and the uncertain economy making standard buy-to-lets seem like too much of a risk, short-term holiday let properties could be the perfect way to get a solid return from your property investment.

In this article, we discuss the process of getting a holiday let mortgage, along with some useful tips on how to optimise your holiday let for potential customers!

What is the difference between a holiday let mortgage and a standard mortgage?

With holiday let mortgages, it isn’t just the name that is different- there are a few things that make holiday let properties unique that you should know about before taking the plunge.

  1. A holiday let is classed as a business– the biggest difference between a holiday let mortgage and a standard rental mortgage is that a holiday let is classed as a business venture rather than a personal investment. This means you’ll be liable to different tax charges than a property you rent out for an extended period of time.
  2. Some lenders view holiday lets as high-risk– since holiday lets are seasonal, some lenders view them as a high-risk property, and so the number of lenders willing to offer mortgages for holiday lets is generally smaller.
  3. You’ll need a bigger deposit– because of the high-risk aspect, lenders normally ask for a minimum of 25% as a deposit for your mortgage.

But it’s not just getting the mortgage you need to think about, as once you’ve sorted out the finances for your holiday let, you’ll become a landlord. But what does being a landlord actually mean?

What do I need to think about now I’m a landlord?

Now that you’re a landlord, you’ll have responsibilities for more than just yourself and your own home- you’ll also be responsible for the maintenance and repairs of the home you’re letting out. You’ll be responsible for things like fire safety checks, electric and gas checks, so it’s important to make sure you think about these things before you make any final decisions.

But it’s not just repairs and upkeep you should think about, you also want to make sure your holiday let is the favourite amongst holiday-goers. We’ve come up with some tips and tricks so that your holiday let can outshine the rest!

  1. Location, location, location– if you want a holiday let that’s going to win the hearts of holiday-goers everywhere, make sure to buy a property in a scenic location like the seaside or countryside.
  2. Decorate- make sure your decoration is up-to-date and neutral. By keeping it neutral, you’ll be sure to have a style that suits almost everyone.
  3. Make the most of your property- market your holiday let so that you showcase its full potential. Have some professional photos taken, and advertise your property online to make sure it’s seen by as many people as possible. However, don’t forget these will be additional costs, so it’s worth factoring in when figuring out how much you can afford to buy.

If investing in a holiday let is something you’re interested in, please don’t hesitate to get in touch. Our advisers are specialists in holiday let mortgages and are happy to answer any questions you may have.

If you want to find out more about Holiday Let mortgages click here.

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.

 

 

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