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What can commercial buy to let’s be used for?

Most commonly used by landlords, homeowners and property developers to:

The holiday let mortgage is a type of home loan that was created with the idea in mind that it would be used for property owners to invest in their own homes and rent them out as holiday accommodation.

However, because this option has become so popular, many people are now using these mortgages to purchase really expensive properties where they will only stay on occasion.

What is a Holiday Let Mortgage

A holiday let mortgage is a specific type of mortgage that is designed for people who plan to use their property as a holiday let such as Airbnb. This type of mortgage usually comes with a higher interest rate than a standard mortgage, as there is more risk involved for the lender. However, it can be a great option for people who want to earn extra income from their property.

The Pros and Cons of a Holiday Let Mortgages

There are several pros and cons to consider before taking out a holiday let mortgage. The main advantage is that you can earn extra income from your property, which can be helpful if you’re looking to cover the costs of owning it. However, there are also a few disadvantages to bear in mind.

One is that you’ll likely need to put down a larger deposit than you would for a standard mortgage, as the lender will view your property as a higher-risk investment. Additionally, your monthly repayments are likely to be higher with a holiday let mortgage.

The benefits of using a Holiday Let Mortgage

A holiday let mortgage can be a great way to finance your property if you plan to use it as a holiday let. Some of the benefits of using this type of mortgage include:

  • You can earn extra income from your property, which can help cover the costs of owning it.
  • Holiday let mortgages can be used to finance the purchase of a property that is specifically designed for use as a holiday let. This means that you can choose a property that is in a prime location for holidaymakers, which can help you to attract more guests.

Things to consider before taking out a Holiday Let Mortgage

When considering a holiday let mortgage, it’s important to think about the implications of using your property as a holiday let. Some of the things you should consider include:

  1. The Interest Rate: The interest rate on a holiday let mortgage is likely to be higher than that on a standard mortgage, as there is more risk involved for the lender. Make sure you compare rates from a few different lenders before making a decision.
  2. The deposit: You’ll likely need to put down a larger deposit than you would for a standard mortgage, as the lender will view your property as a higher-risk investment.
  3. The Repayments: Your monthly repayments are likely to be higher with a holiday let mortgage, so make sure you can afford them.
  4. The Risks: There are several risks associated with owning a property that is used as a holiday let. Make sure you are aware of these before taking out a mortgage.
  5. The Restrictions: Some lenders may place restrictions on how you can use your property, so make sure you are aware of these before taking out a holiday let mortgage.

Please contact us for further information and to talk with a member of our team about purchasing a holiday let mortgage.