Hassle free commercial finance from UK experts

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

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

When it comes to mortgages, there are a few different types that you can choose from. One of these is the serviced accommodation mortgage, which can be a great way for people to purchase the property.

What are Serviced Accommodation Mortgages

A serviced accommodation mortgage is a mortgage that allows you as the landlord to rent the property out to tenants on an a short term basis. This kind of loan is perfect for individuals who want to invest and have the option to live in a home that is either fully equipped or entirely unfurnished.

Another benefit of a serviced accommodation mortgage is that it can help you save money on tax, we are not tax advisors so please enlist the help of an accountant to help you with what you can and can’t claim back against your tax return however you should be able to claim these things against your taxable income:

  • Water rates, council tax, gas and electricity
  • Landlord insurance
  • Costs of services, including the wages of gardeners and cleaners (as part of the rental agreement)
  • Letting agents’ fees
  • Legal fees for lets of a year or less, or for renewing a lease of less than 50 years
  • Accountant’s fees
  • Rents, ground rents and service charges
  • Direct costs such as phone calls, stationery and advertising for new tenants

If you are interested in applying for a serviced accommodation mortgage, there are a few things you need to know.

Drawbacks of the serviced accommodation mortgage and how to avoid them

While a serviced accommodation mortgage can offer several benefits, it is important to be aware of the drawbacks of this type of mortgage. One of the main drawbacks is that you may end up paying more for your property than you would if you chose a different type of mortgage. This is because the interest on a serviced accommodation mortgage is typically higher than the interest on a traditional mortgage.

To avoid this, it is important to compare the interest rates of different serviced accommodation mortgages before you apply for one.

Finally, one of the main drawbacks of a serviced accommodation mortgage is that it can be difficult to find a property that meets your needs. This is because the property typically needs to suit the lender, such as having all ensuite bathrooms and be in an area where there is high demand for temporary accommodation.

If you are looking for a serviced accommodation mortgage, it is important to shop around and compare the different options available to you. By doing this, you can find a mortgage that meets your needs and budget.

Please contact us right away for more information and to talk with a member of our staff.