Changes to our mortgage offers to support ongoing mortgage applications impacted by the Coronavirus outbreak.
A post-referendum Britain has been the catalyst to many economic changes.
Not only did the pound stumble, but poor exchange rates changed the way we holidayed, with many of us choosing to take a ‘staycation’ rather than travel overseas.
Landlords have since capitalised on this trend and as a result, boosted the holiday-let market two-fold. Why? Well, the figures speak for themselves: research conducted by Skyes Cottages reported Dorset as the UK’s top-earning location, with four-bedroom properties marking an average of £43,000 in gross income a year – a substantial yield.
It may sound idyllic, but what does this mean in terms of a mortgage?
In short, mortgages work slightly differently on holiday-lets compared to the traditional buy-to-let products, therefore, your choice of lender may be limited. For example, for a property to be considered a holiday-let it must be available as short-term accommodation for at least 210 days of the year. This means that the property does not have a guaranteed income during specific seasons – unfavoured by many of your high-street lenders.
However, the good news is the availability of holiday-let specific mortgages have steadily increased, with building societies, such as the Newbury, leading the charge.
For example, Newbury Building Society’s holiday-let mortgage has been designed to specifically help customers who are considering purchasing, remortgaging or looking to borrow additional funds where the property is let on a holiday basis for some or all the year. In addition, due to our common-sense lending approach and individual underwriting process, we will consider the potential holiday-let income when assessing affordability to allow investors to see more value from their rental portfolios.
Like with any property investment, a holiday-let carries its own risk but for landlords looking to diversify their portfolio, it could be a profitable addition. All you need to do is talk to us about taking the next step.
OUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.