Holiday Let Mortgage Advice

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Taikoo
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Holiday Let Mortgage Advice

Post by Taikoo »

Hi All,
My first post so please be gentle.
We are coming to the end of a two-year, fixed-rate, holiday-let mortgage with the Leeds Building Society. The rate is currently 2.94% and will increase to 3.14%. The good news is that this doesn't seem too bad. The bad news is that there appear to be very few holiday-let mortgage providers to choose from. Does anyone have any recommendations?
Many thanks
Rob
jeffers70
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Location: Beadnell, Northumberland
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Post by jeffers70 »

Hi Rob

We had the same problem when we purchased our holiday let the distinct lack of companies offering holiday let mortgages.
There are a few smaller regional mortgage companies who offer a holiday let mortgage only in their area.

We ended up using the Principality Building Society, it is not advertised as a holiday let mortgage just a buy to let.

Here is a link to their competitive rates:

http://www.principality.co.uk/en/mortga ... -mortgages

If you read the description in important information it says can be for a holiday let.

We had no issues getting ours!

Hope this helps!

Martin
Joanna
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Post by Joanna »

We're with Leeds too and when our deal came to an end we couldn't find anything to better it so we stayed put. There were a couple of others that allowed holiday lets but the savings weren't enough to cover the cost of moving. Plus, getting new BTL mortgages seems to be getting more and more complicated - they want so much info now it gets quite time consuming.
Jo

Joint owner of Baker's Cottage in Chester & Chandler's Cottage in Sidmouth
Taikoo
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Post by Taikoo »

Thanks Martin and Joanna.

I got excited by the rates offered by the Principality BS but sadly they only offer up to £250K and we need a bit more.

I'm coming to the conclusion that it will be the Leeds again, but I'm still suprised at the lack of choice.

ROb
Jenster
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Post by Jenster »

We have just heard that the flat below ours might be coming up for sale soon. We are very keen, but would need to raise a mortgage this time. Are principality and Leeds really the only two options or is anyone with anyone else? Thanks
Giraffe
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Post by Giraffe »

Taikoo, Jenster - have you tried your bank? When I divorced I had to rearrange my finances and mortgage which my bank helped me with. Got a much better deal than any of the mortgage companies offered. But I had been with the bank for 40 years so they knew me well.
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Nemo
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Post by Nemo »

There are a few, but they don't offer the most competitive rates. Personally I'd go to a mortgage broker to try and find you a deal. If you can raise funds against your existing properties rather than a holiday let mortgage, you're likely to have access to much better rates.
Sheffield89
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Post by Sheffield89 »

Hi,
We've used both Principality and Cumberland. Cumberland were very easy to communicate with when we arranged with them 3 years ago - there was just 1 chap who sent me all info and answered emails swiftly with appropriate advice.
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Casscat
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Post by Casscat »

An online article also mentions National Counties and Monmouthshire as potential lenders on holiday rental properties, but the latter only lends on properties in Wales and South West England.
Jenster
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Post by Jenster »

Thanks everyone, I have found a fee free broker so may try them, but raising funds against our own home may be the best option as we have very little mortgage left and a lot of equity. Are lenders generally ok with people doing this to buy another property?
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Nemo
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Post by Nemo »

Many lenders are more than happy for you to release equity that way. If there's plenty of equity in the house then the figures should fairly easily stack up.
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Casscat
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Post by Casscat »

Jenster wrote:Thanks everyone, I have found a fee free broker
Nothing in life is free when it comes to products and services. You are paying, however that process is achieved.
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