We specialise in Holiday Let Mortgages all over England, Wales & Scotland.
Due to our location on the Isle of Wight we arrange a number of Holiday Let Mortgages every year. The Isle of Wight is undoubtedly one of the nicest places in the UK to holiday, with its mix of coastline, beaches, historic places to visit, beautiful walks, villages and plenty of pubs offering lovely food. The Island has most of the things that people look for when going away and, being relatively small (22.5m east to west), everything is accessible within a short drive.
With such a great demand from holiday makers, the Isle of Wight is a great place to have a property you can Holiday Let.
Why invest in a Holiday Let property?
The beauty of a Holiday Home is flexibility; you can use the property yourself for some of the year and, in addition, rent the property for holiday use therefore generating an income.
What are the basics of Holiday Let Mortgages?
It is important to know that a Holiday Let mortgage is not the same as a mortgage used for a Buy to Let property.
A Buy to Let mortgage contract will have different conditions attached to the type of occupancy and will usually specify that an AST (Assured Shorthold Tenancy) is in place. A lender’s valuer will determine what rent is realistically achievable and from this a calculation is done that will determine the maximum loan size.
In the case of a Holiday Let mortgage, rental income will be determined by using a projection from a local or national holiday letting agency. Evidence of this projection is required at mortgage application stage. The lender’s surveyor will then view the property and assess the suitability of the property and the credibility of the rental projection.
Mortgages to purchase a Holiday Let property are available to individuals, partnerships and limited companies.
You will require a good size deposit to purchase a Holiday Let property using a mortgage; usually a minimum of 25% is required. This could be raised from investments or savings or alternatively you could capital raise from the equity available in other properties, such as a main residence or Buy to Let properties. Also, gifted deposits from family are usually acceptable.
If you are keen to know if such an opportunity might be right for you please get in touch. You can do so using the ‘Send message’ tab at the foot of the page, email us or book an appointment via the tabs to the right of the page. Alternatively, call our team on 01983 616666. We would be only too happy to have the opportunity to help.
Your home may be repossessed if you do not keep up repayments on your mortgage
