Holiday Let

Holiday Let

We will be able to discuss with you all the reasons for purchasing a Holiday Let and give you advice on the most suitable and affordable options around Holiday Let purchase

Providing Information to obtain a Holiday Let mortgage

As with any mortgage or loan, you’ll be required to provide an in-depth account of your financial and personal situation when you apply. This will be more so when you are purchasing a Holiday Let as the financial commitments of owning a primary residence and a Holiday Let is obviously significant.

Our Advisers will need full details of your annual income and expenses and these will need to be considered alongside any assets you may own. You’ll be required to go through standard money laundering security checks and be prepared to have to provide bank statements, employers letters, pay slips and other income proofs prior to making your internet mortgage application. If you’re applying with a partner they will need to do the same as the Holiday Let mortgage UK or Holiday Let mortgage will need to be carefully assessed by our panel of Holiday Let mortgage lenders.

Holiday Let mortgages for a Holiday Let purchase are generally more difficult to obtain as UK mortgage lenders are more cautious when assessing applications to purchase a Holiday Let. Lenders can be more difficult with Holiday Let purchasers because the mortgage borrowing will often mean that your income is stretched even further if you have a Holiday Let mortgage to maintain.

This sometimes results in paying a slightly higher rate of interest on a Holiday Let purchase to reflect the mortgage lenders increased risk. At Capital Fortune we know our lenders and we know our criteria, importantly we get to know our clients, This allows us to place the right client at the rate at the right time.

Capital Fortune Top Tips for purchasing a Holiday Let

The dream of purchasing a Holiday Let needs to undertaken in the knowledge that you will be undertaking a significant financial commitment. The notion of a Holiday Let purchase to be used as a weekend retreat or for family holidays has powerful appeal.

It is however, important to carefully consider all the pitfalls before you buy.

1. Search deep inside

It is important to properly assess how much time you will spend in your Holiday Let once it has been purchased. Will be it be for an odd weekend, most weekends or just one or two holidays each year? Do you like going to the same place on holiday, for shorter breaks or do you prefer variety of location? A Holiday Let purchase or Holiday Let purchase will need to be in a desirable location not where you want to live, but where you want to escape to. The amenities and facilities in the Holiday Let location may therefore be different to those at your primary residence. Ask yourself, Do you want to be in the City, a town, a small village or up in the mountains, how accessible do you want or need to be? Do you want people to be close by or far away? You will need to search deep inside yourself as to what you want to really achieve by purchasing a Holiday Let and the real deep seated, perhaps emotional reasons for the Holiday Let purchase.

2. Plan before you buy

It is always good to have a Holiday Let purchase plan before you start your search for the ideal property. Within the plan consider issues such as the monthly and annual costs having considered these within your budget planner. Look at how frequently you will visit your Holiday Let and does it need to be close to motorways, rail links or on good public transport routes. How far does it need to be from restaurants, supermarkets and local facilities such a libraries and museums? It may be useful to purchase a map and circle an area of the map as to the ideal location you would want your Holiday Let purchase to be. Then set yourself a maximum budget as to how much you are willing to pay for the ideal Holiday Let purchase. Stick with the purchase plan and do not digress from it, regardless of how much you fall in love with a Holiday Let whilst undertaking viewings.

3. Purchasing on a whim

Never purchase a Holiday Let whilst on holiday. It is always best to go back to the resort, particularly when it’s out of season and much of the holiday infrastructure has been suspended. You may find that the regular transport links which you had assumed where all year round stop suddenly in the winter months. The beautiful golden beach may look less idyllic in a snow storm. Whilst on holiday, it is easy to get carried away due to feeling relaxed, happy and less stressed. Your positive feelings are inherently associated with the resort as you experience it for a few weeks on your annual trip. The experience can be much different if you are frequently using your Holiday Let. Absence can make the heart grow fonder but sometimes, even with a Holiday Let, familiarity can breed contempt.

4. How long will you keep the purchased Holiday Let?

It is important to ascertain how long you intend to keep the Holiday Let. Will the purchase be for a couple of years, 10 years or do you plan to retire there. The length of time you decide to keep your Holiday Let will inform the purchasing decision. In addition, there are numerous costs involved in purchasing any home including mortgage application fees, online mortgage broker fees, or offline over the phone for that matter, solicitors’ fees, valuation fees, stamp duty and even surveyors’ costs. There may also be refurbishment costs associated with the Holiday Let purchase. On selling the property, there will invariably be the further costs of moving afterwards.
To this, add the cost of doing up the place while you are there. All these need to be considered when purchasing.

5. Can you afford to purchase a Holiday Let?

There is the obvious Holiday Let mortgage, Holiday Let mortgage or loan costs in relation to your purchase but have you considered the associated ongoing costs such as council tax, travel to the location, insurance, utility bills and council tax. These costs when attached to the purchased Holiday Let may double your overall household expenditure as you will not just need to service the outgoings on your main residence but also on your Holiday Let. You will need to consider the impact of this. It would be useful to undertake a budget planner and assess the actual costs of running your current property. You may be surprised as to the amount of the annual costs and these will be increased significantly, if you purchase a Holiday Let. Think carefully before undertaking your purchase.

6. Is purchasing a Holiday Let a financial priority?

Purchasing a Holiday Let can be expensive. You will need to finance the purchase with a Holiday Let mortgage, Holiday Let mortgage or loan. A Holiday Let is not a necessity like a first home where you need to maintain a roof over your head. It is a luxury and potentially other considerations need to apply when assessing your priorities such as the amount of your overall mortgage debt, your assets or any future capital outgoings such as a new car or school fees .


7. Shared Holiday Let purchases

Many people decide to purchase a Holiday Let jointly with others. This can be a great way of reducing the overall burden and financial commitment. Shared purchases can also cause problems. Your concept or idea of cleanliness and tidiness, may differ from theirs and can lead to difficulty. Sharing the costs is a real benefit associated with Holiday Let purchase but with it comes with sharing the responsibility and this should be kept in mind.


8. A Holiday Let purchase is not always an investment

A Holiday Let purchase is not always an investment. Property prices can rise but they can also fall. Holiday Let mortgage and loan costs can go up as well as down but what is clear, is that over time, the costs of maintaining any home appear to be rising. Council tax goes up year on year, utility bills increase and maintenance costs for the property as it ages are unlikely to fall. It is important to consider all these factors prior to purchasing a Holiday Let, as whilst the dream of a Holiday Let being an investment for the future, may take hold, the reverse could be the case and your Holiday Let mortgage could become a significant financial burden.


9. Buy for today not tomorrow

In purchasing a Holiday Let you should buy for your needs today not tomorrow. It may be that in 10-20 years you would like to retire to your Holiday Let. In 10-20 years you may however be less fond of the location or have grown tired of it. We change with time, and what we see as ideal for us in retirement, when retirement comes, it may be wholly impractical. It is important to make your purchasing decision for a Holiday Let on what you want today not tomorrow.


10. Selling your Holiday Let

Finally always purchase a Holiday Let with a good re-sale market. One day it will ultimately be sold and in entering any financial transaction you should always first consider the costs and ease of exit.

A Holiday Let purchase can be rewarding experience and can significantly add to the quality of life. It is important however, to at least consider all the above tips and if your heart is still set on the purchase, then follow your dream.

Call us today on 020 77 100 400 or Enquiry Online.

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Selected Holiday Let Mortgages

A selection of some of our lenders mortgage products and rates are shown below. Contact us for a quote specific to your circumstances. Table data updated 04/04/2016.

CodeIntial
Rate
Mortgage
Type
For /
Until
Subsequent
Rate
APRCEarly
Repayment
Charge
Fixed Lender
Fees
% Lender
Fees
Notes
001 2.10% Discount 2 Years 5.99% 5.19% 3% of loan to be paid within first year, Then 2% of loan to be paid for next year, 10% capital repayments allowed per year without penalty. £199 None

Max 60% loan to value

Min personal income of £40,000

Max Loan £500,000

002 2.10% Fixed 30/04/2018 4.99% 4.73% 3% of loan to be paid until 30/04/2018 £994 None

Max 60% loan to value

Min personal income of £20,000

Max Loan £250,000

003 2.80% Fixed 30/04/2018 4.99% 4.85% 3% of loan to be paid until 30/04/2018 £895 None

Max 75% loan to value

Min personal income of £20,000

Max Loan £250,000

004 4.49% Discount 2 Years 5.49% 5.5% 2% None 0.75%

Max 70% loan to value

Min personal income of £25,000

Loans to £1M