Looking for holiday let Mortgage and Specialist Holiday Let Advice?
A Holiday Let and Holiday Home mortgages is a loan specifically designed for properties let out as holiday accommodation and the mortgage differs significantly from a standard residential mortgage. It is intended for properties that the borrower does not intend to live in, but rather to rent out the property to provide a income and capital growth. These mortgages are usually interest-only, meaning monthly payments cover only the interest on the loan, with the principal amount due at the end of the mortgage term. This structure can be advantageous for landlords, and Holiday Lets as it often results in lower monthly payments, allowing for potentially better cash flow management. However, you need to have a plan in place for repaying the principal amount borrowed.
Imagine owning a charming cottage by the sea, not just for your personal escape but as a savvy investment opportunity. Welcome to the world of holiday let mortgages, a financial product designed to turn your dream of property investment into a reality.
Holiday let mortgages are a unique type of loan tailored for properties rented out as short-term holiday accommodations. Unlike traditional buy-to-let mortgages, which are based on long-term tenancy agreements, holiday let mortgages cater to the dynamic nature of vacation rentals. This means that even though the income from such properties can be more sporadic, it often has the potential to be more lucrative overall due to higher short-term rental rates.
MMB Finance, located in the heart of Swindon, offering bespoke holiday let mortgage services for the South West.
The beauty of a holiday let mortgage lies in its flexibility and the freedom it offers property owners. With the ability to borrow up to 75% of the property's value, investors can secure their slice of paradise with a minimum 25% deposit. This lower loan-to-value ratio reflects the lender's need to manage the risks associated with the fluctuating income of holiday rentals.
But the journey to securing a holiday let mortgage is paved with specific criteria to ensure both the lender's and borrower's interests are protected. For instance, lenders may set minimum and maximum loan amounts, ranging from £40,000 to a substantial £1 million, depending on the property and the lender's policies. They also consider the borrower's personal income, independent of the property's rental income, to ensure the sustainability of the mortgage payments.
Moreover, lenders typically look for an expected rental income of 125% to 145% of the mortgage interest, calculated at a higher interest rate than the actual rate paid. This stress test ensures that even in off-peak seasons, the property can still cover its own costs.
What Makes MMB Finance's Services Unique In Swindon?
Face-to-Face Service
Another advantage of being independent and our long experience as financial advisers is that we are able to provide you with a full range of financial services, including mortgages, second charge loans, buy-to-let mortgages, life insurance, family protection insurance, buildings and contents insurance, estate planning, will writing and personal finance planning, amongst others.
This means that we are able to advise you on your entire financial position, rather than only specific parts. This could help you save cost, in the long-term, by ensuring you have the right financial services for your circumstances.
No Fees For Advice
We charge no fees* for our advice to you, which means our advice is effectively free!
Most advisers, such as estate agents and other businesses offering usually charge a broker's fee on top of the commission they receive from the lender. You can be assured that you will not be charged such fees by us.
Local Knowledge & Experience
We tend to concentrate on working locally, within a 40 mile radius of Swindon (Gloucester, Cheltenham, Bristol, Bath, Cirencester, Oxford, Reading) and have strong ties to Swindon and its surrounding regions. Many of our loyal clients have been with us for over 25 years and we regularly review and update their financial plans. Our reputation is strong, as is our customer satisfaction, with many positive reviews from previous clients.
Our local knowledge brings experience of the local market and its trends. This crucial information can make a difference to the advice given to you, as local influences can be very different to national trends. Therefore, our local knowledge is used to make sure you have sound financial advice to give you the financial services which are best for you.
100% Independent Broker
MMB Finance has been a leading independent brokerage in Swindon since 1996 and has over 35 years of industry experience. Being independent means we are not tied to any bank, building society or lender of any type. Consequently, you can be assured that you will always receive objective advice, which is suited to your personal situation.
Furthermore, being an independent broker, we have access to any lender, bank or building society in the UK, which gives you access to the best possible product for your needs.
