Guide to Holiday-Let mortgages

by Furness Building Society

The UK has been enjoying a real boom in staycation holidays and more of us are looking closer to home for cosy cottages, trendy city break apartments and cool cabin holidays.

 

Across the country, Holiday-Let mortgages are enabling property hunters to tap into the demand for travel by investing in a property that can be let out on short term conditions.

 

So if you’re looking to generate an income from the holiday home of your dreams, whilst benefiting from regular getaways yourself, then a Holiday-Let could be the perfect fit. The first step is looking into your Holiday-Let mortgage options to get a better understanding of how much you could borrow, as well as the monthly repayments.

To help, this guide breaks down everything you need to know about mortgaging a rental holiday home.

What is a Holiday-Let mortgage?

A Holiday-Let mortgage is when you borrow money from a mortgage lender specifically to buy a property that will be leased to tourists on a short term basis.

It’s important to note that it differs from a holiday home mortgage. This is for people wanting to borrow money to buy a property that only they will use.

To qualify for a Holiday-Let mortgage, your new property must be available for bookings at least 210 days a year. It must also be occupied by paying visitors for a minimum of 105 days. Many lenders allow 55 days of personal use, but with Furness Building Society you can reap the benefits of your investment by putting your feet up and enjoying the space yourself for up to 90 days per year!

Can I get a Buy-to-Let mortgage for a holiday rental?

No. This is one of the biggest misconceptions when it comes to buying a Holiday-Let property. You cannot simply use a Buy-to-Let mortgage on accommodation that you intend to lease out short term. 

What’s the difference between a Buy-to-Let and a Holiday-Let mortgage?

How much can I borrow for a Holiday-Let?

Can I get a UK mortgage on a property abroad?

How profitable are Holiday-Let homes?

Next steps

Things to note:

Many of the big UK lenders do not offer Holiday-Let mortgages in their suite of services. And with fewer lenders in the market, it’s important to not get caught up with the wrong deal for you and your situation.

 

Do you have any questions?  

Please get in touch with our team of experts to discuss your Holiday-Let plans -  or give us a call on 0800 834 312.