Getting Holiday Buy To Let Loans

by : Sean Horton

When it comes to getting a holiday buy to let loan then the first thing you have to make sure of is that the property you are buying as a holiday let meets the requirements to be classed as a holiday let. When it comes down to getting your mortgage then you are either looking for one for a holiday let or a holiday home, there is a difference.

The property will be classed as a business if it meets the rules set out for a holiday let. Any renting that you take for the property have to be made at full rental cost, this means that any freebies and half price renting to family and friends don't count. The property that you are renting as a holiday home must be fully furnished and the property must be available for letting for 140 days out of the year and you must actual let it for 70 days. You cannot have someone rent the property for longer than a period of 31 days during 7 months and when the property isn't available for let or if you use it yourself then you won't qualify for the tax breaks linked to the holiday let.

Once you have met these rules then you will be looking for a holiday buy to let loan and this can be the hardest part of the venture you are undertaking. Unless you know something about finance then you would be wise to take on the advice of a specialist broker, when it comes to holiday buy to loans a broker has the knowledge and the resources that can ensure you get the best deal on your holiday let loan.

There is much to know about holiday buy to let loans and lenders who are going to take the gamble of loaning you the money are going to want to make sure they are backing a winning venture. The majority of them will ask that you expect to make at least 130% of the mortgage from renting the property and you will of course have to put up a deposit which can be anywhere in the region of 15% to 30% of the cost. Of course if you have gone with a broker then they will do the looking around for you and secure 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.