When it comes to holiday buy to let mortgages you should have done your homework well before you get to this stage. You should have looked into all the possibilities including the good and bad of owning a holiday home for letting. You should have taken into consideration the property prices and how much rent you would be likely to get from the property and, of course, the insurance that will be needed to cover your venture.
Only then can you actually go on to make an offer on a property. If your offer is accepted then now is the time to consider holiday buy to let mortgages. This is not the same as your home mortgage, there is much more to it than that and by far the best way to get the best advice and deal when it comes to holiday buy to let mortgages is to go with a specialist broker. A specialist will know what you need and where to look in order to get the best deal available for you.
Your property will of course have to meet the requirements to be seen as a holiday let and you should make sure that you can expect to meet these rules. For instance your property should be available for rent for a period of no less than 140 days out of the year and you must be able to successfully let it for at least 70 days within a given time.
This of course doesn’t mean renting the property at discount to friends and family but full paying renters, along with this the lender is going to want to make sure that your property will be able to bring in around 130% or more of your mortgage repayments. Another factor that has to be taken into account is the fact that some lenders will base the mortgage just on the predicted income from the holiday let while others will base it on you other income and you will have to meet this requirement too. When it comes to the deposit that you will be required to put down, then this will vary with some lenders asking up to 30% due to the risks that are involved, again this is where an expert broker can really make a difference in securing you the best deal possible.
However if you can get your holiday let up and running successfully then you will be able to take full advantage of the many tax breaks that a holiday let offers.
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