Unlock Your Dream Holiday Property with Expert Mortgage Guidance
Transform your portfolio profits with a serviced accommodation or holiday let mortgage
Investing in property is complex, made more so by the myriad of investment options available.
If you’re looking for the best investment for your portfolio, even with the 2024 budget changes Holiday Lets and Serviced Accommodation are a great option.
With the rise of AirBnB, Booking.com and other self listing sites it’s become a much more open market for short term lettings of all types. The traditional agents are still there but these sites have made a huge difference to being able to let a property out as and when you want to.
Acorn.finance have many years owning and funding holiday lets, so we understand your needs, issues and pain!
With more than 40 lenders on our holiday let specialist mortgage panel and other business and property lenders we’ll be able to make your holiday property dream into a reality.
How much could I borrow on a holiday let mortgage?
Talk to us about what you’re looking for and how much you’ll need to fund it, often a consultation at an early stage can save a lot of time later on.
Typically mortgages of up to 75% loan to value (LTV) are commonly available. But some lenders will offer up to 80% in key areas.
However it is possible to borrow up to 100% of your holiday let property if you have equity in your buy to let portfolio or residential property.
Your repayments will come from the property income which we’ll help you to assess. That means that your own income can be less important for a mortgage than it is for a residential property. Lenders sometimes have a minimum income for the applicants but they generally set it at a reasonable level.
We have holiday let mortgages for first time investors, portfolio owners and ex-pat investors, so whatever your funding need, you can trust Acorn.finance to get the right holiday let or serviced accommodation mortgage.
What deposit I require for a holiday let mortgage?
A minimum deposit of 20% of the property is needed but more commonly it’s 25% of the purchase price.
You’ll also have to cover a variety of arrangement fees, legal fees and Stamp Duty Land Tax or Land and Buildings Transaction Tax in Scotland. For a second property you’re likely to have to pay a 3% surcharge and if you’re resident abroad there are further surcharges so make sure you have sufficient to cover those costs. Again your Acorn.finance broker will help you with calculating all the costs and finding ways to raise the deposit you need.
Can I stay in the holiday property myself?
Yes – holiday let mortgage lenders normally allow 6 to 8 weeks personal usage per year. If you’re going to need more than that then check in with your Acorn.finance advisor to make sure we approach an appropriate lender for your situation.
I’m not sure if I want to offer Serviced Accommodation or a traditional tenancy – can I change my mind?
Many lenders need you to commit to one or the other business model. If you’re not sure there are lenders offering serviced accommodation mortgages who will allow the flexibility to change later so let your advisor know that’s what you’d prefer.
Find out more about standard buy to let mortgages if you’re not sure which way to go.
Considerations around serviced accommodation and holiday let mortgages;
How will you let the property?
You might let through established holiday let companies such as Booking.com or Vrbo or opt for a more hands on approach through Airbnb
Servicing the property?
If the property is local, will you be able to handle changeovers yourself? If not will you have to employ an agency?
Fully managed properties can still be profitable but ensure you understand exactly what you’ll be paying out before you sign.