JSMedia – There are many types of holiday let mortgages. Whether you’re looking to invest in multi-unit property or are new to landlording, holiday let mortgages can offer you great deals and flexibility. In addition to their tax benefits, holiday let mortgages can be taken out as a limited company. However, the interest rates on holiday let mortgages tend to be higher than those on standard buy-to-let mortgages. If you’re planning to rent your holiday home, you may need to pay a larger deposit than for a typical buy-to-let mortgage.
While holiday let mortgages are generally more expensive than traditional buy-to-let mortgages, there are several benefits that you’ll likely enjoy. In addition to being much cheaper than a standard buy-to-let mortgage, holiday let mortgages allow you to take out a larger loan amount. The downside of this type of loan is that the lender’s lending criteria is more restrictive. Some lenders only offer variable discount rates, which means your repayments will vary from time to time. Luckily, you can find a lender who offers a fixed rate, though these can be more expensive. Typically, a fixed rate is around 3.5 percent, although you may have to pay more if your property is steel or concrete framed. Fortunately, there are some great holiday let mortgage lenders to choose from.
While holiday let mortgages are more expensive than standard buy-to-let mortgages, they come with different advantages. You’ll have to choose whether to opt for a repayment mortgage or an interest-only mortgage, since the latter will allow you to reduce your monthly payments, but will require you to repay the capital at the end of the term. Depending on the lender, interest rates on holiday let mortgages may vary widely, so you’ll want to compare their repayment options and decide which option is right for you.
Holiday Let Mortgages: Who Are the Best Holiday Let Mortgage Lenders?
If you plan to use a holiday let mortgage to rent your property, it’s a good idea to look for a specialist. In most cases, you’ll be dealing with a building society, but there are also lenders specializing in holiday let mortgages. The best ones have specific products and can match you with a broker who specializes in these types of mortgages. There are many benefits to using a broker to find a holiday-let mortgage.
While holiday-let mortgages may seem like a good investment, they’re not as easy as you might think. In addition to your own personal finances, holiday-let mortgages can be a lucrative business venture. You can take advantage of the tax benefits of this type of investment by reducing your taxes. Those who are new to the business may want to consider a mortgage that is designed to fit their needs.
It’s important to choose the right holiday-let mortgage for your needs. Lenders will assess your personal income and outgoings. They will also check if you have another mortgage on your property, as this can affect your ability to borrow. When selecting a lender, make sure they’re willing to negotiate your terms. Once you’ve chosen the right lender for you, your loan will be approved and your property will be ready for rent.
The best holiday-let mortgage is tailored to your situation. Lenders will consider your personal income, outgoings, and credit history. They will also consider your personal finances. If you have a good credit history, you will be eligible for a loan with a low monthly payment. A high interest rate is another drawback of a holiday-let mortgage. The best ones have low interest rates, but the minimum is 30%.
If you’re looking for a holiday let mortgage, you should make sure you raise the deposit to at least 40%. Increasing the deposit is one of the best ways to improve your chances of being approved for a holiday let mortgage. The other way to raise cash is by remortgaging your current property. But this method will only be effective if you have enough equity. You can then use the equity in your current property to boost the deposit on a holiday let mortgage.