The holiday let market is strong due to the 'staycation' boom, which is set to continue. Having your own holiday let is also a way to have somewhere you can escape tofor up to 90 days a year, all while having a lucrative extra income.

Today, there are various lenders who recognise this trend and there are more mortgage products are out there to help buyers realise this dream.

Which is where we can help.

At Smiths Financial, we are specialists in holiday let mortgages and have access to a wide panel of lenders who could have the right solution for you.

Crucial to this, we can help you calculate gross holiday let income and personal income to determine affordability of a holiday let mortgage, whether you are looking to invest in a property to boost your income or as a potential nest egg.

It’s worth considering that lenders have different eligibility criteria. Some might look at projected annual rental income, others, average rental based on high, medium and low seasonal rates, as confirmed in writing by a reputable holiday letting agency. But we can guide you through this.

There’s no better time to look into investing in a holiday let, whether you want to buy as an individual or as a limited company.Please get in touch to see how we can help you make this happen.

*The criteria below are taken from one lender’s criteria as of November 2021. Lender’s criteria does vary with each lender, so please contact us with your requirements.

Personal eligibility criteria for a holiday let mortgage:

  • Age 21 – 88
  • Applications can be made by one or two people, so it’s suitable for couples too
  • No minimum personal income

Property Criteria

  • Minimum property value of £120,000
  • You’ll need to show the property can yield a minimum rental income of 145% of interest payments at 5.5% – ask your financial adviser for help here

Properties can be:

  • Ex public sector – houses must have a minimum value of £200,000, flats and maisonettes must have a minimum value of £300,000
  • Properties with land up to three acres
  • Leasehold properties with a minimum 85-year lease
  • Flats and maisonettes with a minimum floor area of 35sqm
  • Whole properties listed for rent on Airbnb with relevant insurances in place

The Financial Conduct Authority does not regulate some forms of Buy to Lets

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