HOLIDAY LET PROPERTY GUIDE
You have probably already given quite a bit of thought to the property type and location for your holiday let, but will your idea of the perfect location and property type fit the lending rules set by mortgage providers active in the holiday let market?
At the time of writing, we are aware of just over 20 different lenders that are active in the holiday lettings market. Each one has specific lending rules that cover what is and what is not acceptable security in terms of holiday let property type, condition and location.
We will provide some guidance on how lenders assess the suitability of security property. This may of course affect your decision on what and where to purchase.
As a potential holiday let property buyer, you will need to decide what to buy and where. The property size, number of bedrooms, charm, age, condition, location is all in the mix.
A lender’s assessment of the property is about security. They set the rules on acceptable property types and locations because they want to know that if you do not keep up the repayments, the property can be sold to repay the loan.
Of course, each lender will have a different attitude to risk and the property saleability, which may well affect other areas of lending criteria, such as loan to value (LTV) and personal underwriting.
