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Holiday Let Mortgages

Holiday Let Mortgages

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        • 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.

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  • 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.

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Specialist INDEPENDENT mortgage brokers – ☎ 020 8301 7931

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        • 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
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        • 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!

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        • Q&A

Help with a holiday let re-mortgage

You are here: Home / Q&A / Help with a holiday let re-mortgage

Q

I 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 the HMRC FHL rules, the tax position would be favourable in comparison to buy to let. We liked the idea of this, especially because it allowed for our occasional use too.

My wife found the perfect property for holiday letting in Dorset and we managed to secure it. We used our savings, plus the money that we had inherited, to cover the full purchase price of £600K. At the time, we suggested to our accountant that we take out a £200-£220K holiday let mortgage and retain some of our savings, as the kids might need some financial assistance at some point to help buy their own properties.

Our accountant said that there was no point paying interest on a loan, when we could get the money back, by a re-mortgage, at the point that it was required. This seemed a perfectly reasonable piece of advice to us.

A year on with the kids are now talking about house purchases etc, we thought that it was probably time to get our savings back. I used one of those money supermarket sites, found a couple of numbers for lenders that offer holiday let remortgages, thinking it would be easy at below 50% loan value.

Both lenders that I spoke to, told me that replenishment of savings was not allowed under their capital raising rules. We have now realised that what we should have done was to take the mortgage of £200K mortgage at the time and used it for the purchase, then the problem wouldn’t exist.

The question is, as a specialist in holiday let mortgages, do you have anyone that can help us?

Roderick

A

Hello Roderick

Pleased that you found us, as this kind of work is where we are a real asset to our customers. Many of the lenders that offer holiday let mortgages and re-mortgages to the public on their websites, have standard lending criteria, frequently poorly explained, with no flexibility to cover anything that isn’t totally standard. So a good case that passes commonsense, such as yours, will just fail.

We have a close relationship with one lender that does take a commonsense view on a variety of non-standard propositions. We can put your case to them and a real human being, not a computer, can look at the pros and cons. Our experience says that your case should pass a commonsense check. You will of course have to pass the routine mortgage questions, such as clean credit, house is structurally sound etc.

If you would like to call the office and speak to Mark, he will talk you though the next steps.

Category: Q&ATag: Holiday let re-mortgage, holiday let remortgage, remortgage, remortgage a holiday let

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