Looking to secure a mortgage for a holiday property or to expand your portfolio? Here you’ll find more information and how we can help you.
A holiday let mortgage is a loan which is specifically for properties that are let on a short term basis to holiday makers. A holiday let can be a great investment as you are able to charge more than if the property would be let on a buy to let basis.
Our specialist knowledge allows us to support first time and experienced buyers with holiday mortgages, helping you secure the right funding to grow a successful property portfolio.
Rated 5 Stars on Google
Fill out our enquiry form and we’ll contact you to book a free call with one of our mortgage advisers.
Your Path to Successful Property Investment
The maximum loan to value for a holiday let mortgage is 80%. The lenders will assess your personal income and expenditure alongside the estimated weekly rental income. The lender will assess the application based on the average of the low, medium and high season weekly rent.
Most of the holiday let lenders allow you to stay in the property for up to 90 days per year typically.
The main difference between a holiday let mortgage and a buy to let mortgage is the way the rental income is assessed by the lender. A buy to let mortgage is assessed on the actual monthly rental income received whereas a holiday let mortgage is based on an average of the low, medium and peak season weekly rent.
A holiday let while it can achieve higher rental income, the outgoings are significantly higher. When you purchase the property, you will have to fully furnish it to make it attractive to potential holiday makers. There is also more ongoing maintenance as the property has to be cleaned after each check out.
Depending on the lender you will typically require:
Deposit: A higher deposit, usually around 20-40% of the properties value, is usually required compared to residential mortgages.
Affordability: A minimum income of at least £20,000 per year is required by most lenders
Rental Coverage: Surplus rental income of at least 125-145% of the mortgage payment to cover any rental voids
Credit History: A good credit history demonstrates your ability to manage debt responsibly.
Unfortunately not. Even if the mobile home is on a permanent site, you will not be able to get a mortgage.
The amount will depend on your circumstances, the property and the rental income. Generally the larger your deposit is, the cheaper the rate would be.
We value your time and understand the urgency of property transactions. Our service takes a streamlined approach to the application process, reducing unnecessary paperwork and ensuring efficiency. We work diligently to expedite your mortgage approval, helping you transition from property search to ownership sooner. Your investment journey is our priority, and we’re committed to making it as smooth as possible.
What makes us Specialist Property Finance Advisers
Secure a mortgage deal today and we'll keep watch on your lender's rates. If a better, suitable deal becomes available, we'll let you know and help you switch.
We have amassed many positive reviews on Google and glowing testimonials from our clients over the years which we are very proud of.
We have excellent relationships with all of our banks and lenders. We're often asked for our opinions on the property market and current mortgage products.
We know that the mortgage market can move quickly, so it can be frustrating to see your lender release a better deal than your current one.
The Keys Mortgages Rate Watch Guarantee is designed to give you peace of mind, knowing you always have the best deal and protect you against missing opportunities of lower rates.
We guarantee to keep watch on your chosen lender’s rates and if a better deal becomes available, we’ll let you know and ask the lender to change product without having to start over (lender restrictions may apply). This is free and included as part of our service.
“I’ve had the privilege of working closely with Cheryl Williams and Amy Zakary over an extensive period, both in my professional role at Precise Mortgages as Sales Director and as a landlord with 32-years experience. In the realms of buy-to-let mortgages locating a broker with genuine specialisation is no small feat.
My confidence in Keys Mortgages is unswerving. Drawing from my experience conducting training at Precise Mortgages, I can vouch for Cheryl and Amy’s exceptional knowledge. Their commitment to delivering a quality service, fused with unwavering expertise, forms the bedrock of their five-star service proposition.”
Find out more about Capital Gains Tax for UK Property and use our calculator to get the numbers.
Find out more and use our calculator to quickly work out the gross rental yield on an investment property.
A mortgage is a loan used to purchase a home. The property you’re buying serves as security for the loan. You make regular payments, which include both principal (the loan amount) and interest, over a specified period. As you make payments, you gradually own more of the property.
There are various mortgage types, including fixed-rate mortgages (interest remains constant), variable-rate mortgages (interest fluctuates), tracker mortgages (linked to the Bank of England base rate), and more. Your mortgage broker can help you find the right option based on your financial situation and preferences.
The amount you can borrow depends on factors like your income, credit history, expenses, and the lender’s criteria. Lenders typically use a multiple of your income or affordability calculations to determine the maximum loan amount.
An agreement in principle (AIP) is a preliminary indication from a lender that you’re eligible for a mortgage up to a certain amount. It’s not a guarantee but can help you understand your budget. A formal mortgage offer is a commitment from the lender to provide the specified amount at agreed-upon terms after a thorough verification process.
Aside from the property’s price, you’ll need to budget for additional costs like arrangement fees, valuation fees, legal fees, stamp duty (if applicable) and potentially broker fees. Your mortgage broker can provide a breakdown of these costs.
A mortgage broker acts as an intermediary between you and potential lenders. They analyse your financial situation, help you find suitable mortgage options, and guide you through the application process. Their expertise can save you time, ensure you’re aware of available options, and increase your chances of securing a favourable mortgage deal.
Send us your enquiry today and one of our friendly advisers will call you back for a free consultation at a time that suits you. Hassle-free with no obligations.
