Holiday home
mortgages Holiday let mortgages Buy to holiday let mortgages
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For advice and guidance on holiday home mortgages mortgages please go to www.holidayletmortgages.co.uk
To most people, the idea of buying a holiday home is very exciting. But you need to decide how you are going to finance it. Unless you have savings or equity, you will need to look for a holiday home mortgage. As demand for holiday homes increases, more and more mortgage lenders are offering holiday home mortgages to people. If you intend to let your holiday property out on a commercial basis, it can be slightly more difficult. But if it is simply for the use of yourself, family and friends, there isn’t usually a problem. Normally a holiday home mortgage will provide a maximum of 70-80 % of the value of the property in questions. Mortgage lenders usually insist on a minimum property value, which is usually around £70,000 - £80,000. Of course the mortgage company will need to be happy that you can afford the mortgage repayments, in addition to your first mortgage if you have one. Some lenders will lend on properties in England, Wales and Scotland, but others exclude Scotland for a holiday home mortgage. You can choose a capital repayment mortgage or an interest-only holiday home mortgage. The sooner you pay it off, the sooner the holiday home will be yours. An interest-only mortgage will mean your monthly repayments are more affordable, but you will have to find some other means to repay the capital. This shouldn’t be a problem if you are expecting an inheritance, or if you plan to sell your first home eventually. Otherwise, of course, it will have to be repaid by selling the holiday home. You could agree a more favourable interest rate on your holiday home mortgage, especially if you have a larger deposit. Some lenders offer you the choice of a fixed rate or a variable interest rate. You may also be able to get a split rate mortgage that gives you the best of both worlds. Finding a holiday home mortgage can be a very arduous experience. Obviously for your holiday home mortgage you want to avoid additional stress as much as possible. Talk to an independent mortgage broker that specialises in holiday home mortgages about the kind of arrangement that best meets your needs. |
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