Holiday let mortgages

Dillon141

Anyone know of LOW rate mortgages for holiday lets?

Cheapest I have found is 3.5%. Last year I found one at 3.19%. I’ve been told they have gone up due to economic factors such as Brexit, Covid etc.

But surely there is cheaper than 3.5% somewhere?

Thanks.

K_S

@dillon141 What amount, what LTV, which part of the country, purchase/remo, first time or experienced, personal or ltd.co, is the rate you've quoted with or without a fee, 2 year or 5 year fix?

All these (and more) factors will impact the "best rate" that you could potentially access.

Dillon141

K_S said:

@dillon141 What amount, what LTV, which part of the country, purchase/remo, first time or experienced, personal or ltd.co, is the rate you've quoted with or without a fee, 2 year or 5 year fix?

All these (and more) factors will impact the "best rate" that you could potentially access.

I was looking for the cheapest for the next 2 or 5 year period. 

It seems that 3.5% is the best I can find, for a house with a clause on it that it can only be a holiday let. I believe this was a discounted, or variable discounted one. 

Any advice?

Thrugelmir

Letting holiday properties isn't the business to be in at the moment. Higher rates reflect the increased risk of default. 

K_S

Dillon141 said:

K_S said:

@dillon141 What amount, what LTV, which part of the country, purchase/remo, first time or experienced, personal or ltd.co, is the rate you've quoted with or without a fee, 2 year or 5 year fix?

All these (and more) factors will impact the "best rate" that you could potentially access.

I was looking for the cheapest for the next 2 or 5 year period. 

It seems that 3.5% is the best I can find, for a house with a clause on it that it can only be a holiday let. I believe this was a discounted, or variable discounted one. 

Any advice?

@dillon141 That probably limited the pool of lenders significantly. A lot of holiday-let products require that there be no occupancy restrictions that apply to the property, ie that it can be used as a residence as well.

paddytt

K_S said:

Dillon141 said:

K_S said:

@dillon141 What amount, what LTV, which part of the country, purchase/remo, first time or experienced, personal or ltd.co, is the rate you've quoted with or without a fee, 2 year or 5 year fix?

All these (and more) factors will impact the "best rate" that you could potentially access.

I was looking for the cheapest for the next 2 or 5 year period. 

It seems that 3.5% is the best I can find, for a house with a clause on it that it can only be a holiday let. I believe this was a discounted, or variable discounted one. 

Any advice?

@dillon141 That probably limited the pool of lenders significantly. A lot of holiday-let products require that there be no occupancy restrictions that apply to the property, ie that it can be used as a residence as well.

We are considering buying a property with no occupancy restrictions, and using it (for the first 5 years at least) as a holiday let.  We have been quoted 4.05% over 5 years (Hodge).  Did we miss specifying that it has no occupancy restrictions, or is that a typical rate?  

The problem is at that rate, the business plan doesn't work.

thanks

TT

K_S

paddytt said:

K_S said:

Dillon141 said:

K_S said:

@dillon141 What amount, what LTV, which part of the country, purchase/remo, first time or experienced, personal or ltd.co, is the rate you've quoted with or without a fee, 2 year or 5 year fix?

All these (and more) factors will impact the "best rate" that you could potentially access.

I was looking for the cheapest for the next 2 or 5 year period. 

It seems that 3.5% is the best I can find, for a house with a clause on it that it can only be a holiday let. I believe this was a discounted, or variable discounted one. 

Any advice?

@dillon141 That probably limited the pool of lenders significantly. A lot of holiday-let products require that there be no occupancy restrictions that apply to the property, ie that it can be used as a residence as well.

We are considering buying a property with no occupancy restrictions, and using it (for the first 5 years at least) as a holiday let.  We have been quoted 4.05% over 5 years (Hodge).  Did we miss specifying that it has no occupancy restrictions, or is that a typical rate?  

The problem is at that rate, the business plan doesn't work.

thanks

TT

@paddytt Assuming 75% LTV, it's not atypical for a 5-year fix. There are cheaper products (including some variable/discount products) but if you've used a whole of market broker and that's the most cost-effective product they've returned, then that's probably the cheapest available for your requirements and circumstances.