Holiday Lets purchased using commercial finance on the increaseMake Text Bigger
Members of The National Association of Commercial Finance Brokers (NACFB) have reported a steady increase in Holiday lets being purchased using commercial finance along with the number of lenders and products to support this business.
Investors and Lenders are being attracted by the higher potential income that can be generated by holiday lets in locations of strong demand, seeing this as a good income generator for investors and lowering the perceived risk to lenders’ security.
As reported recently by the Independent “the second home sector grew again last year. The rise means there are now over a quarter of a million homes across England that have been brought as holiday homes or lets.”
It is important to determine what the property is to be used for and to make the distinction between a Buy to Let (which will be let on assured short-hold tenancies) and a holiday let, which will allow the owner to use the property for holidays and to let out for short-term.
Lenders are now offering specific mortgage packages to support this growth in popularity of holiday lets, recognising the appetite of borrowers for second homes, and Brooklands commercial finance have sought out examples for us of some of the best deals and criteria currently on the market:
- Rates from 3.65%
- LTV’s up to 75% (100% with additional security)
- Low arrangement fees (and free valuations in some instances)
- Interest only available
- Whole of mainland UK
- Established and new holiday lets
- Rental Stress testing at 120% of the mortgage payments
- Minimum incomes required £20,000 for sole applicant and £30,000 for joint
- Minimum property values £50,000
- Maximum property values £500,000 or more with business case
- First time investors are acceptable.
If you would like any assistance to finance a Holiday Let please email firstname.lastname@example.org with your requirements and contact number and we will ask our preferred brokers Brooklands commercial finance (members of the NACFB) to assist.
Or call me on 01603 489118
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