Before you get to this point, you should have done your research on holiday buy-to-let mortgages. You should have thought about everything, including the pros and cons of renting out a vacation home. You should have thought about how much the property costs and how much rent you could expect to get from it. You should also have thought about the insurance you will need to cover your business.
After that, you can make a real offer on a property. If your offer is accepted, now is the time to think about buy-to-let mortgages for vacation homes. This is not the same as your home mortgage; there is a lot more to it than that. A specialist broker is by far the best way to get the best advice and deal on holiday buy-to-let mortgages. A specialist will know what you need and where to look so that you can get the best deal.
To be considered a vacation rental, your home will have to meet certain requirements, and you should make sure you can follow these rules. For example, your property should be available for rent at least 140 days a year, and you must be able to rent it out for at least 70 days within a certain time.
This doesn't mean renting the property to friends and family at a discount, but rather to full-paying renters. The lender will also want to make sure that your property can bring in at least 130% of your mortgage payments. Another thing to think about is that some lenders will only base the mortgage on the expected income from the vacation rental, while others will also look at your other income, which you will also have to meet. When it comes to the deposit you'll have to make, the amount will vary. Some lenders may ask for as much as 30% because of the risks involved. Again, this is where an experienced broker can really help you get the best deal possible.
But if you can get your vacation rental up and running well, you'll be able to take advantage of all the tax breaks that come with it.