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Holiday Let Mortgages

Holiday Let Mortgages

  • Home
  • MORTGAGES
        • Holiday Let Mortgage Broker

          We have been specialising in holiday let mortgages since 2006 and have accumulated a deep understanding of all types of holiday let finance.

        • Holiday Let Mortgages
        • Holiday let remortgages
        • Buying a holiday home
        • Expat Holiday Let Mortgages
        • Mixed & Multi-Unit Holiday Lets
        • Guest House Mortgages
        • Deposits
        • Holiday Park Mortgages
        • Development Finance
        • Review Service
        • Mortgage Guide
        • Mortgage Criteria
        • Holiday Let Tax Rules
  • INSURANCE
  • ABOUT US
        • Holiday Let Mortgages is an Independent Mortgage Broker specialising since 2006 in mortgages for holiday let properties.

          This means that we are free from any outside influences in terms of where we can go to get you the best mortgage rates and deals available.

        • About Us
        • What We Do
        • Review Service
  • CONTACT US

Specialist INDEPENDENT mortgage brokers – ☎ 020 8301 7931

  • Guides
        • HOLIDAY LET GUIDES

          We have a lot of resources to help you with your holiday let. There are quite a few guides plus many articles on how we can help people successfully invest in a holiday let property.

        • Holiday Let Mortgage Guide
        • Holiday Let Mortgage Criteria
        • Buying a holiday home for investment
        • Holiday let property guide
        • Guide to UK Holiday Lets
        • Buying a holiday home in the UK
        • Jargon Buster
  • Calculators
  • Articles
        • HOLIDAY LET ARTICLES & CASE STUDIES

          There is lots of useful information in our article and case study sections. Built up over many years we share new developments in lending attitude and also client case studies for the more difficult holiday lets!

        • Articles
        • Case Studies
        • Q&A
Deposits For Holiday Let Mortgages

Deposits For Holiday Let Mortgages

Deposits For Holiday Let Mortgages

When purchasing a property with the aid of a holiday let mortgage you will need to provide a cash deposit of at least 25%.

The source of the deposit is an important consideration that is often overlooked by many purchasers.

Deposits can come from:

  • Cash savings
  • Investments
  • Property sale
  • Inheritance
  • Remortgage
  • Gifted money

There are some pitfalls when dealing with raising a deposit by remortgaging a property you already own, that if overlooked can ruin a good case or cost an applicant quite a bit of money in abortive costs.

Issues that often arise when trying to raise a deposit from equity in other properties:

  • The current mortgage is tied to an existing lender with large Early Repayment Charges and they won’t offer you a further advance
  • Currently you’re enjoying a great long term low rate deal that’s too good to let go, but your lender won’t offer a further advance

In addition to obstacles in raising the deposit for the purchase of a holiday let, there is also the real possibility of going about it the wrong way!

Examples include:

  • attempting a re-mortgage to a lender that does not allow capital raising for the purpose of buying a holiday let
  • re-mortgaging to a lender that insists on simultaneous completion of the re-mortgage and holiday let purchase
  • raising deposit capital through a remortgage on a main residence, when purchasing a commercial holiday let, can cause rejection if the commercial lender believes that the applicant is becoming over exposed to interest rate increases that may effect overall financial stability

The list of potential deal breakers is too varied to include them all here, so to avoid a costly mistake please speak to us first in order to make sure that both sides of the transaction are fit for purpose.

Please contact us to discuss your holiday let mortgage requirements or call 020 8301 7931

Let’s work together

Get in touch with us and send some basic info about your project.

Get in touch!

CONTACT US

Holiday Let Mortgages

1st Floor, 140 Long Lane
BEXLEYHEATH
DA7 5AH

T 020 8301 7931
E mortgages@holidayletmortgages.co.uk

QUICK LINKS

Holiday let mortgage guide

Guide to UK holiday lets

Holiday let mortgage criteria

Holiday let articles

Holiday let tax

WE LIKE TO TALK

Please contact us whether you have found a property or project that needs financing or you are just in the early stages of forming a plan.

It’s often an advantage to discuss the financial side of a deal before everything has been agreed. So please call us on 020 8301 7931 and tell us your holiday let ideas.

Copyright © 2020 · Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Broker fees may apply. Written details on request. All loans subject to status. Think carefully before securing other debts against your home. The Financial Conduct Authority does not regulate holiday let mortgages. Holiday Let Mortgages is a trading style of Drake Mortgages Limited and this website is owned and operated by Drake Mortgages Limited who are authorised and regulated by the Financial Conduct Authority FCA Register No 207532 | Privacy | Terms