Specialists in holiday let mortgages
A Holiday Let Mortgage can help you achieve such a dream but can also become a worthwhile investment if you do it properly. Who wouldn’t want a bolt hole that pays for itself? There are tax breaks to be had from a true Holiday Let as they are considered by HMRC to be a bonafide business providing you adhere to the rules. We can help you understand the rules and an accountant is probably better placed to help you understand the tax breaks.
Tax treatment varies according to individual circumstance and is subject to change.
A Holiday Let is different to a Buy To Let, as it is intended for people who will have short term lets during peak period throughout the year due to tourism. A Buy To Let is a long term rental. This is also different from a Holiday Home Mortgage which is a second home that only you will use. It cannot be let out to others.
How can you get a holiday let mortgage?
As mentioned above, a furnished Holiday Let, if administered correctly, may have tax breaks allowable by HMRC but only if the rules have been adhered to. For example, the property has to be available to be let out for a minimum of 210 days per year, and you have to actually let it out for 105 days a year. Also, you can’t include in those days any longer-term lets i.e. anything over 31 days.
For you to qualify for a Holiday Let Mortgage, there is tighter lending criteria. A lender will assess your personal income and the expected income from the rent of the Holiday Let. If you have a significant mortgage on your own residential property this could significantly impact what they will lend to you. This is due to the fact that the lender will want to make sure that you can afford and pay the required repayments if there is a time when the Holiday Property is not let. This is generally referred to as a rental void.
If wish to speak to us about a holiday let mortgage please call 0330 094 5476 or send us a message and we’ll be in touch as soon as possible.