When it comes to getting a holiday buy-to-let loan, the first thing you need to do is make sure that the property you want to buy as a vacation rental meets the criteria to be called a vacation rental. There is a difference between a mortgage for a vacation rental and a mortgage for a vacation home when it comes to getting a mortgage.
If the house meets the rules for a vacation rental, it will be considered a business. If you rent out your property, you have to charge the full amount. This means that free or half-price rentals to family and friends don't count. The property you rent out as a vacation home must be fully furnished and available for rent 140 days out of the year. You must rent it out for at least 70 of those days. You can't rent out the property for more than 31 days in a 7-month period, and you won't get tax breaks for holiday letting if you use the property yourself or when it's not available to rent.
Once you've met these rules, you'll have to look for a holiday buy-to-let loan, which can be the hardest part of your project. If you don't know much about money, it would be smart to talk to a broker. When it comes to holiday buy-to-let loans, a broker has the knowledge and resources to make sure you get the best deal on your loan.
There is a lot to learn about holiday buy-to-let loans, and lenders who are willing to risk giving you the money will want to make sure they are putting their money behind a good idea. Most of them will want you to expect to make at least 130% of the mortgage from renting out the property. You will also have to put up a deposit, which can be anywhere from 15% to 30% of the cost. Obviously, if you use a broker, they will do the shopping for you and get you the best deal possible.
Holiday buy to let loans can be a nightmare and one of the hardest parts of your new venture but it doesn't have to spoil your dreams, a broker can make all the difference and could save you thousands in the long run by avoiding a costly mistake.
