If you're looking for a Holiday Let mortgage for yourself, our Mortgage Advisers will be able to answer any questions and assist with your application.
Holiday Let Mortgage FAQs
Holiday Let Mortgages are loans designed for properties that will be let as holiday accommodation.
Not many lenders offer Holiday Let mortgages, as they are considered a specialist type of borrowing.
But that doesn't mean it has to be more difficult to get one!
At Monmouthshire Building Society we have years of experience in the Holiday Let industry.
Your mortgage will be handled by Holiday Let Mortgage experts, so the process should be just as straightforward as a standard Buy-to-Let mortgage.
This depends on several factors, such as:
Holiday Let Mortgage Calculator
If you know how much annual rental income a property is likely to make, you can use our Holiday Let Mortgage Calculator to find out how much we might lend towards that property.
This depends on the Loan to Value (LTV) of the mortgage.
Our Holiday Let Mortgages are available up to 75% LTV – so you can take out a Holiday Let Mortgage with as little as 25% deposit.
Here are some things to consider when deciding between a Holiday Let property and a traditional Buy-to-Let:
Tax Relief is being cut on Buy-to-Lets - but not on Holiday Lets.
This means that from 2020-2021 onwards, finance costs will no longer be an allowable deduction from property income. This will be replaced by a basic rate tax reduction.
At the moment Furnished Holiday Lets aren’t subject to these changes, as they are seen by HMRC as a trade rather than an investment.
This means that as well as being eligible for certain Capital Gains Tax reliefs and capital allowances, the owner of a furnished holiday let may continue to deduct 100% of mortgage costs from their property income.
Holiday Lets have the potential to give you a bigger return on investment.
Holiday Lets have the potential for a higher yield than Buy-to-Let properties.
For example, in high season Holiday Let properties can make more in one weekend than a similar Buy-to-Let property makes in a month!
Holiday Let rental income is less reliable.
With Buy-to-Lets, tenants are provided with an Assured Shorthold Tenancy Agreement.
This means you can expect regular rental income for at least 6 – 12 months each time you sign a new tenant.
With Holiday Lets, there’s a lot more uncertainty over whether your property will be booked, and they can take longer to get established to the point where you're bringing in regular income.
There are also seasonal fluctuations in income with Holiday Letting due to high and low season.
There’s more work involved in Holiday Letting.
Holiday Lets are a lot more time consuming than Buy-to-Let properties.
You’ll have to market your property, manage bookings, reply to enquiries and make sure your online listings are up to date.
There are more overheads with Holiday Letting.
As a landlord of a residential Buy-to-Let, property maintenance is your responsibility.
However, paying the bills and keeping the property clean is usually down to your tenants.
With holiday letting, it's all down to you.
You have to provide all the furnishings, pay the utility bills and make sure the property is clean for each guest.
Choosing the right property will boost your chances of being accepted for a Holiday Let Mortgage.
Here are some things to consider when choosing a Holiday Let property:
Holiday Let Mortgage Rates - Purchase
Our Holiday Let mortgages can help you buy properties in holiday hotspots across Wales and England.
Holiday Let Mortgage Rates - Remortgage
Make your holiday let more profitable by getting a better mortgage deal.
All our mortgages move onto our Standard Variable Rate after the initial rate period. Our Standard Variable Rate is currently 5.24%. If our Standard Variable Rate changes, your monthly repayments could go up or down.
IF YOU FAIL TO KEEP UP WITH PAYMENTS ON YOUR MORTGAGE A ‘RECEIVER OF RENT’ MAY BE APPOINTED AND/OR YOUR PROPERTY MAY BE REPOSSESSED.