Holiday home Holiday Let Staycation Boom Second home UK economy holiday let mortgage criteria South East England holiday lets
Marketing No Comments

Mortgage options for borrowers looking at holiday-lets have increased by 25% since September 2021 to 231 options, and trebled since August 2020, according to Moneyfacts.

There are now 27 different brands, two more than in September 2021 and 13 more than in August 2020, the majority of which are currently building societies.

Separate research from Hodge revealed a rise in holiday-let mortgage applications of 173% in 2021 compared to 2020.

According to Moneyfacts, government rules to be introduced in 2023 may impact second homeowners if they cannot meet requirements for letting out a home.

Rachel Springall, finance expert at Moneyfacts, said: “As the desire for a UK vacation rose due to the pandemic, the prospect of earning some extra income through a holiday let has spurred borrowers into action and lenders are catering for this demand.

Contact us today to speak with a specialist Holiday Let Broker to discuss how we can assist you

“If the demand for a UK holiday in 2022 lessens, consumers may still get a reasonable return on any investment, but it’s vital for them to ensure they are offering a let during a bustling season so they do not miss out on a demand spike.

“There may also be the need to fund upfront costs to get a property at a high standard to let, to entice a larger clientele and to stand above the competition.

“Should this be the case, borrowers will need to think carefully about what can make them a unique booking, and this will often depend on their location and the time of year.

“Seeking advice from an independent financial adviser before entering a holiday let arrangement and indeed a listing service is wise, particularly as new small business rates relief rules are to come into play next year.

“The government announced new measures to ensure homeowners letting out a property are not abusing a tax loophole. To qualify for business rates, holiday-lets will need to be rented for a minimum of 70 days a year and available to be rented out for 140 days a year under new rules which are to come into force from April 2023, and evidence will need to be shown.

“The move is geared to protect genuine holiday lets and crack down on others, so it will be interesting to see how this will affect those considering an investment, but are perhaps not quite confident they can meet the new requirements.”

By Jake Carter

Source: Mortgage Introducer

Discover our Holiday Let Mortgage Broker services.

Leave a Reply

Your email address will not be published. Required fields are marked *