Buy to let or let to buy for holiday let?

silvercar

Not seen your other posts and I'm not a broker but IMO,

Step 1
You ask your current lender for consent to let on your current home. You then get a new mortgage on your new home. If you need to increase your current mortgage to release some equity to act as a deposit for your new home then you first ask your existing lender if they will do that.

Step 2
You approach a lender who does but-to-let mortgages (yours is let-to-buy but same principle). You arrange a BTL mortgage on your current home, the amount they will lend will depend on the loan-to-value ratio and the expected rental income. You then arrange a new mortgage on your new home (possibly transferring your old mortgage to the new property). This new mortgage would be based on income.

I really would advise using a mortgage broker as the rules for BTL mortgages are complex - all lenders seem to have different criterea. A mortgage advisor should be able to advise on the split between your home and the let property.

Step 3

Suss out the tax treatment of holiday lets. If you can comply with the rules there are big advantages on the tax treatment of holiday lets as oppposed to ordinary letting.

toonfish

with respect - you didn't give folk much chance to reply!

You would possibly find it easier to do a conventional buy to let but there are some lenders that will do holiday lets, especially if there is some history. What they wil lend is dependant on the rental income of the property.

You would just get a conventional mortgage on your new home.

shamac

Sorry if i sounded cross but i had had rather a rude reply to my question in between the answers above which the poster subsequently removed. Thanks for the replies.