Holiday Let Mortgages

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 rental income received where a holiday let mortgage is based on an average of the low season weekly rent, the medium season weekly rent and the 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.