What's roughly the apr% on a buy to let these days?

Thrugelmir

Tracyk wrote: »

No I intend to let it purely commercially - it will only be within a couple of miles where I live so not much use as hol home for me.

Why are you looking to let it short term rather than on longer tenancies?

Income would be more stable.

Tracyk_2

hmm - hadn't thought of that Thrugelmir.

I was blown away with a stunning property on the bank of Loch Lomond - that I reckon would be a fantastic holiday let - esp. at Xmas and Hogmany. Plus I am in a very touristy area (Loch Lomond/Trossachs) - so have had tunnel vision on the holiday let idea. I wonder if I am being narrow sighted??

What do you reckon - should I concentrate on the touristy side of it - or do a more conventional residential type rent? I don't know that there is a particularly high demand for longer term renting here - but couldbe wrong.

luckyfool

I think you are going to be better off getting advice from one or more local letting agents, and also someone dealing with holiday lets, and they will be able to advise on your achievable income from either route. Holiday lets may indeed be the way to go, but someone with local knowledge is going to be able to provide accurate advice rather than people on an internet forum. I'm in Glasgow and given the location you are talking about (National Park etc) I suspect you may be right on the holiday let idea, however a letting agent will be able to tell you if there is a market for yr round lettings, and what would be achievable. Then you would have a decision to make on what is likely to be lower potential income from longer term lettings, but more stable and predictable, vs. holiday lets which with occupancy I would imagine would be far more lucrative, but then if it doesn't get let you could have long periods with no money coming in at all. You will definitely find it is easier to get a mortgage on a traditional buy to let than if you intend to use it as a holiday let for the same reason (assuming there is a demand for 6-12 month lets of that type locally).

michaels

A quick search of BTL mortgages suggests that even with a big deposit (and 25% seems to count as small rather than large) rates (and especially fee adjusted rates) are a rip off - 2 to 3% more than owner occupier rates despite the big deposit requirement which would seem to remove the risk from the lender.

Tracyk_2

aaaaaargh - I thought it would be so simple..................

I am probably being sucked in by the glamour of a nice holiday property on the banks of the loch - as opposed to a bog standard home rental.

I need to do some sums and see if the diff in rental will be marginal - to allow me to indulge myself - or not!