Mortgage for a holiday home.

shamac

Looking to remortgage our holiday home, currently with Ecology as it is a log home and couldn't find anyone else who would look at wooden houses.

Currently on a residential rate as house was built to live in but looking for a buy-to-let type mortgage as want to run as a business. Have 2 years figures now and house is currently covering costs of £1200 per month and made a small profit each year above this.

Have a mortgage of £140k currently, house is worth about £280k-guess it might be worth more as is a profitable business. We would like to take about another £30k out of the house to help fund a deposit to buy another house to live in (currently renting) no adverse credit. Any recommendations gratefully received. :T

Thrugelmir

Are you looking to rent out the property as a holiday let or to tenants on longer term fixed tenancy's.

shamac

Holiday let-average income £1200 per month

AST-average rent in area £600 per month

so it seems a no brainer to carry on as a holiday let if possible-it is 5 mins from the beach!

neverdespairgirl

Even @ a value of £280k, it's only a 6% gross yield, and as holiday lets are more work than ASTs, can't see how it would be worth more.

shamac

Worth more than what? We are looking for ideas of possible mortgage companies who would look at this type of mortgage.

No market for AST's-it is very countryfied, no local work, we would have long void periods and it would make a loss of £300 per month at the moment. Two similar houses in village currently been up for rent for over a year-still empty.

Thrugelmir

shamac wrote: »

Worth more than what? We are looking for ideas of possible mortgage companies who would look at this type of mortgage.

Cumberland Building Society
Scarborough Building Society

antrobus

Thrugelmir wrote: »

Cumberland Building Society
Scarborough Building Society

Err, the Scarborough Building Society no longer exists. It was taken over by the Skipton a couple of years ago.