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Holiday Let Mortgage Criteria FAQ

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Where can I find out about the requirements for getting a holiday let mortgage?Holiday let mortgage criteria vary greatly from lender to lender and can be quite difficult to find in their literature and even more difficult to understand. Lenders have tried to differentiate their products from their competitors and positively try to offer something unusual. So, something as simple as offering the best interest rates is seldom enough to rely on.The smaller Building Societies, who tend to …

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Can we borrow more than £500,000?

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QI have a question, but it’s probably best that we give you some background in terms of our problem.We have found a property in Devon that would make an ideal holiday let property. It’s a single dwelling, just a large house with an acre of land; nothing unusual at all. Located in the South Hams, it’s on the market at offers over £1M.My wife has recently inherited circa £600K. £500K of this can be used towards the purchase of the holiday let. My wife and I thought that, as we are …

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Can I purchase a holiday let complex and live on site?

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QMy wife and I are considering a lifestyle change, moving away from our corporate city life and into the country. I am in Business Banking and my wife works for a company that advises on corporate takeovers. We are nowhere near retirement age, so will need a gainful occupation. In our minds there is no point moving to the country and commuting back into to the city, re-joining corporate life. If we sold our house, the net proceeds would be circa £1M.We are thinking of buying an existing …

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Help with a holiday let re-mortgage

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QI have a holiday let remortgage question for you, as quite frankly can’t seem to find the answer myself.Here’s the brief.Last year we inherited some money. My wife and I have always liked the tangibility of property. Our accountant made us aware of the diminishing return on buy to let, due to the Govt using HMRC as the means to cool the market. It’s worked!He suggested an alternative, that being investment in furnished holiday let. He said that providing that we complied with …

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Holiday let remortgage after purchasing

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QI have a question for you and I am really hoping that you can give me a positive answer with a way forward on a holiday let re-mortgage. My enquiries so far have drawn a blank.Just quickly to explain the situation to you.We have just completed on the purchase of a property in Devon, that will be used as a holiday let investment.There was lots of interested in this property, so we said we were cash buyers in order to be more attractive to the vendor. This wasn’t strictly true …

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Should our Limited Company own a furnished holiday let?

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QWe have a couple of questions for you, but think it’s best to provide some background, before we can get to them. My wife and I are looking to purchase a holiday let business, which consists of seven fully converted, self- contained stone Barns, set in 4 acres, plus a bit of woodland, on one freehold title. All seven barns that form the business are restricted to holiday let use only.Our Solicitor has explained the implication and obligations of purchasing a property with a holiday …

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What are holiday let occupancy clauses?

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QWe have found a converted Barn in South Devon that we wish to purchase for use as a holiday cottage. There is a problem though - the lender we found on a mortgage comparison website, declined our mortgage application citing, "unacceptable security, 12 -month holiday let restriction". The Estate Agent did not tell us about this restriction and we didn't ask.Our questions are:What are holiday let occupancy clauses?How would one affect us?Can you do anything to help us …

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Can we have an interest only mortgage?

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QWe are having a problem sourcing a 70% mortgage to purchase a property to be used as a holiday let in Wales. Our case has been agreed in principle at a holiday let mortgage lender, however is failing their safety margin affordability calculation.It’s our preference to have the loan set up on a capital and interest basis, over 18 years. The lender is insisting that the only way that they will accept the case is if we opt for an interest only mortgage. The reason is that we are …

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