Mortgages for holiday lets?

peter_964rs

I'm not sure if this is quite the right forum but someone *might* know the answer to this: I'm looking to buy a property from a friend of my mother in law and run it as a holiday let. However, it's a wooden built chalet and I'll need a mortgage. I've tried Leeds and Cumberland BS (only brick built) and Principality (not doing BTL/holiday lets any more) - can anyone suggest another lender that might?

thanks in advance

ACG

Leeds and principality would have been the first 2 I tried.

There is only 1 other lender who I know would consider it but their rates are not pretty - circa 8%.

Id suggest speaking to a broker and letting them do the research as this will be difficult to place if neither of those you have mentioned will do it.

Also worth considering is sale of the proeprty, if your struggling now what will it be like when you come to sell.

peter_964rs

Thanks ACG, that's really helpful. 8% is definitely steep; however if the deal works I might consider it. The rental returns could be very good as the chalet is near a popular beach.

Is the lender a secret...?

ACG

Kind of...
Its not a secret, but we (as in advisors) are not allowed to name names. It could be seen as leading and without knowing your full circumstances we could potentially lose our license to trade.

Owain_Moneysaver

When you say "wooden built chalet" is it actually a permanent building, or a log-cabin-style caravan (mobile / park home)? And are you buying the land it stands on and is it a self-contained plot registered at the Land Registry?

peter_964rs

It's a leasehold registered at the Land Registry. If you think 'beach hut' expanded to include separate bedrooms, kitchen, bathroom/WC and living room then that's the style. Not like the log cabin style you can see on holiday parks.