It will depend on several factors and each lender has their own way of calculating how much they will lend you, but in principle they will all consider several key pieces of information. Unlike a homeowners mortgage, the principle driving factor is the potential rental income your Holiday Let property will yield. Here's a quick look at the process:

• You’ll need to have a deposit of at least 20%. Lenders judge a holiday Let mortgage as a higher risk than a standard residential mortgage and expect a higher deposit.
• The lender will then look at the potential rental income you will generate from your chosen property. The projected income needs to be higher than the monthly mortgage repayments to cover any periods when no-one rents it out. You will need to get a Holiday Letting agent to quote for expected weekly rental rates in low, mid and high season for a period of at least 30 weeks. Please get in touch if you would like help finding a suitable Letting Agent to help you with these projections. We’re here to help!
• They will take into account your current income, or financial situation if you don’t work.
• Most will lend up to 60% of the property value, some 75% and one or two 80% of the property value, depending on your personal financial circumstances and the other factors mentioned.
• Most lenders will offer a minimum mortgage value of £50,000 with some offering up to £5million.

• Your age. You will usually need to be over 21 and under 85 years of age.
• Your current income or financial situation. You typically need to be earning at least £20,000 per year or be financially secure.
• Rental income expectations. Most lenders will want to see typical rent per week in the low, medium and high seasons and a 30-week projection of rental earnings. They will usually factor in their own estimations of maximum occupancy and running costs so make sure you provide gross income projections.
• Loan to property value (LTV). Typically the LTV is 60%, with some lenders offering 75% or 80% on occasion.
• Loan size (usually between £50,000 and £1million, with a few willing to lend up to £2million).
• Estimations of the running costs of the Holiday Let property. Mortgage providers will often factor in their own calculations of the cost of running the holiday let.

Don’t worry if your estimations of what you might be able to borrow don’t meet your expectations. Mortgage lenders calculations vary, and we can help you identify the best Holiday Let mortgage provider based on your circumstances. Just get in touch.

Typically, yes, but there are some instances where lenders will not require this. For example, if you live in a property supplied as part of your job.

You can use your holiday let property yourself as long as you make it available for holidaymakers to rent for a minimum of 210 days per year and successfully let it out for 105 days. Allowing friends and family to stay in the property for no or reduced rent does not contribute to days let out.

Remember, the Holiday Let mortgage provider will want to know that your projected rental income will more than cover your monthly mortgage repayment costs.

There are a number of advantages, but it ultimately depends on your investment strategy.

Firstly, you get to use the property yourself if you wish.

Another key advantage is the way HMRC views this type of investment. A furnished holiday let is deemed a business and all expenses you incur to generate your rental income, including mortgage interest, can be deducted from your rental income before you are assessed for tax. This is not the case for buy-to-let mortgages suitable for renting out property on a long lease. We can’t give tax advice, but a good property tax specialist will be able to advise on what’s right for you.

If  the property you want to buy as a holiday let needs refurbishment you might not be able to get a holiday let mortgage immediately. This will likely depend on the scale of the work.

However, a bridging loan could be appropriate while the work is being done. This is because a lender offering a holiday let property mortgage will want it to start making an income as soon as possible.

A bridging loan is a short term loan which doesn’t require monthly payments. Instead, you re-pay the whole amount with interest at the end of the term. This is typically no longer than 12 months.

Typically, the property should be fit to live in. It should also be easy to sell on if need be. Properties

on holiday parks, of unusual construction or properties that have

restrictions on whom they can be sold to, have annexes or more than one

property on the title deeds can be a challenge but as specialists, we

can discuss fully with you.

As well as paying the mortgage you’ll need to factor in other likely costs associated with the purchase:

• Stamp Duty
• Conveyancing costs
• Solicitor fees
• Furnishing and decoration
• Building and Contents Insurance

There will also be monthly costs to factor in such as:

• Letting agent’s fees
• Weekly cleaning costs and possibly laundry costs
• Regular repairs and maintenance costs e.g., boiler servicing
• Utility bills

A holiday let property is an attractive investment option because the HMRC views a furnished holiday let as a business. This means all expenses you have in connection with the rental income can be deducted before you’re assessed for tax on that income. This includes any interest you pay on your holiday let mortgage. You should always seek tax advice before making any final decisions and we’ll be happy to help you source the right advisors to work alongside us. Please note, this is subject to change. We strongly recommend getting up to date, professional advice on this area.

The short answer is yes. It’s possible to do this. And in principle it might be a sound plan… but there are pros and cons to take into account before you make this decision:

• Remember the value of property can fall and rental income is not guaranteed. The Covid pandemic made it impossible to rent out holiday properties and some owners were forced to arrange payment holidays with their mortgage company. It is important to be prepared for the unexpected.
• The type of home you want to retire to may not be the most lucrative in terms of holiday rental. It might be better to consider a larger family-sized home for holiday rental now and plan to sell it once you are ready to retire.
• Owning and using your holiday let part time will allow you the opportunity to explore a new area and decide over time if it’s s a place you’d like to retire to.
• Areas change and what looks like a perfect spot now, might not be in 10 or 15 years’ time.
• You’ll also need to ensure you have the right type of mortgage in place for when you do make that switch to living in there.

Yes. What’s on offer can vary so please get in touch with us if you’d like our help and we’ll try to find a holiday let mortgage that’s right for you.

Yes! There are limited company holiday let mortgages available, but it’s always best to get an experienced accountant’s advice if you’re thinking of buying a holiday let property through a limited company. What’s available varies from time to time so please drop us a line if you need help to buy your holiday let this way.

It might be more difficult to get a mortgage offer, but it all depends on your other circumstances. We can advise you once we understand more about your personal circumstances. Having a copy of your credit report will help us see what’s possible.

At House and Holiday Home Mortgages, we provide a range of services to make your buying process as simple as possible. We assist you in finding the right mortgage product, whether you’re a first-time buyer, self-employed, looking to re-mortgage or you’re interested in increasing your property portfolio.

Here are the services that we offer:

• Financial advice, such as advice on mortgages, mortgage protection policies, insurance products and referrals to Will writing experts.
• Help to find the right solicitor for you; for first time buyers we recommend selecting a local solicitor that you can visit in person.
• Full administrative support from the beginning and right through the process.
• Contact with the right holiday letting agency if you are launching a holiday let property.

Working with one of our local mortgage brokers means you will be advised by someone who is highly experienced, has local knowledge to help you find the right local advisers and the right property as well as the right mortgage product for you. Our mortgage brokers work with over 60 different lenders and have worked hard to build good working relationships with each of them so they’re able to find you the best deal for you and your circumstances, and work to keep your transaction progressing.

Craig Bryce in our Bath office, is dedicated to finding solutions to any issues that may arise. He will help you to accurately complete your mortgage application and provide the right paperwork as well as putting you in touch with expert local solicitors and estate agents. He will always take the time to understand your plans and when needed, offer you realistic and honest advice.

Knowing the Somerset area well, he can help you understand what to expect to uncover on property searches, for example. From familiarity with future developments, to council tax bands, his expertise and local knowledge will help ensure your home buying experience is a positive one.

A mortgage broker offers you an unbiased view of the entire market, they often have over 60 lenders on their books, and they’ll work with you to determine which is the right fit. We’re completely unbiased and transparent about the positives or negatives of a particular lender for you and your situation. Although visiting your own bank may seem like the simplest thing to do, they won’t be able to provide you with unbiased advice as they can only advise on their own products. We consider every aspect of a lender to determine whether they meet your needs. Our years of industry experience mean that lenders often come to us for advice, especially for holiday letting properties.

Absolutely! We want to help as many people as possible. Just make sure your friends need help and have given their permission first!

As soon as your friends' new mortgage completes (i.e. starts) then we'll  be in touch to send you your voucher to say "thank you".

We need either you or your friend to tell us at the start that they've come to us via your recommendation. From there, we'll log it in our system to ensure we say thanks once their mortgage completes.

Commercial lending typically falls outside UK regulations. However, many lenders in this niche, sign up to the Lending Standard Board's Standards of Lending Practice for business customers.

You can. A commercial remortgage is often used to refinance a commercial property.

Some people use a commercial remortgage to buy additional property or increase their commercial assets.

Commercial bridge loans are a specific kind of short-term commercial loans.

It can be used as a fast solution when a borrower needs a commercial loan quickly.

They have a higher risk than other types and that often affects the interest rates, although eligabilty criteria depend on the borrower's situation and whatever terms are negotiated with the lender.

The main benefit of FIB insurance is that it can provide financial security for your family if you die or are diagnosed with a terminal illness. The monthly income payments from FIB can be used to cover everyday living expenses, such as mortgage payments, childcare costs, and utility bills. FIB can also help to pay for education, medical expenses, and other financial needs.

One drawback of FIB insurance is that it can be expensive, especially if you want a high level of monthly income. Another drawback is that FIB policies usually have a shorter policy term than other types of life insurance. This means that you will need to renew your policy more often, which can increase the cost of the insurance.

FIB insurance is a good option for people who want to provide financial security for their family if they die or are diagnosed with a terminal illness. It is also a good option for people who have young children or other dependents.

We've written a whole post about that here. We're good at what we do and provide first-class service - in order to do that, we need to charge fees.

That will depend on where in the process you are. If we've secured a mortgage offer, then your fee will still be charged. However, we'll always try to be fair - if you find a new property quickly and the circumstances haven't changed then we may be able to avoid charging you again. Your advisor will always agree this with you at the time.

If you're buying or remortgaging multiple properties at one, we may be able to reduce the fees. Talk to us and we'll see what we can do.

Because we believe it's that important. Our clients are charged a fee for their mortgage advice, but as part of that we want to help you protect yourself financially against the worst happening and we don't want fees to be a barrier to that.

Our fee structure is consistent across the business so you won't be charged more for using one of our advisors over another.

If you make a claim on your critical illness cover, you will typically receive a tax-free lump sum payment. The amount of the lump sum payment will depend on the terms of your policy. The process of making a claim on critical illness cover will vary depending on the insurer, but generally you will need to provide medical evidence to support your claim. Once your claim has been approved, you will receive the lump sum payment within a few weeks.

Yes, you can cancel your critical illness cover. However, you may have to pay a cancellation fee. The cancellation fee will depend on the terms of your policy and how long you have had the policy.

The pros of critical illness cover include:

It can provide financial security if you are diagnosed with a serious illness.
It can give you peace of mind.
It is relatively affordable.
The cons of critical illness cover include:

The premiums can be high if you are older or have a health condition.
You may not be able to claim if you are diagnosed with a pre-existing condition.
The policy may not cover all illnesses.
Ultimately, whether or not critical illness cover is right for you depends on your individual circumstances. If you are considering taking out critical illness cover, it is important to compare different policies and understand the terms and conditions before you make a decision.

Possibly. You must contact your current lender and let them know of your plans. Most lenders will require you to obtain their consent before letting out your property on Airbnb.

They could view you letting out your entire property as a breach of their mortgage contract and so you may need to switch to a holiday let or commercial mortgage.

Commercial mortgages are designed for properties on long term lets for day-to-day business activities. They are not usually available for Airbnb property lets, however, if you have a large property portfolio it may be possible to borrow funds through a commercial mortgage. There will be certain criteria you would need to satisfy, but we can advise you and help with any application. Get in touch for an initial no obligation chat!

As with any other type of mortgage there are many factors involved. It’s possible that you might be offered a lower holiday let mortgage rate.

The factors lenders will consider are:

• Your credit rating. If you have a poor credit rating it might still be possible to be offered a mortgage. However, the interest rate on your mortgage offer is likely to be higher than someone with a good credit rating.
• The size of your deposit. The larger your deposit typically means the lower the interest rates you are likely to be offered. You’ll need at least 20-25% deposit to start with, with rates improving up to a 40-50% deposit.
• The type of property. If the property you want to buy is non-standard, listed, or unique the higher your interest rate is likely to be. This is because lenders will see such properties as higher risk and potentially more difficult to sell on. For example, if the property has a flat roof or is in need of lots of repairs you might struggle to get a good offer.

We can help you navigate the holiday let mortgage landscape so if you’ve any queries, please get in touch.

Always contact your existing lender if you plan to rent out part or all of your property on Airbnb to tell them of your plans. They may want to know how many rooms will be available and for how many weeks a year. You might also have to prove that your original intention when taking out the mortgage was to live in the property and that your decision to list on Airbnb is a recent one. In most cases lenders will provide consent, for an arrangement fee.

However, some may decide to increase the interest rate on your mortgage. This happens if the lender thinks there’s an increased risk of damage to the property. They’re taking the long view. Foot traffic and wear and tear can make the property harder to sell on. If you don’t tell them what you are doing and they find out, they may force you to re-pay your mortgage, so it’s not worth the risk.

Don’t worry, we’ll help you work out the best solution for your plans and ensure you have the right mortgage, whatever happens.