The buy-to-let market has faced some tough times of late. Between an overhaul of mortgage tax relief and an uncertain political climate, many traditional buy-to-let landlords have left the space.
However, holiday let mortgages could offer a new opportunity for those who prefer Trip Adviser reviews to monthly inspections.
While a major change to mortgage tax-relief has put a great deal of pressure on the buy-to-let sector, making it difficult to get the desired return on investment, holiday let mortgages remain exempt from these changes.
Owners of a holiday let can deduct the cost of a mortgage from any profits, before calculating income tax. Expenses such as council tax, utilities, maintenance, cleaning costs, property management costs and advertising can also be deducted.
However, to qualify for the tax relief, a property must be classified by HM Revenue & Customs as a Furnished Holiday Let.
What you get with Hodge Holiday Let
We’ve built this mortgage with holiday let landlords in mind. In working directly with intermediaries who specialise in this market we’ve been able to tailor something which has everything their clients need.
Business development director of Hodge, Emma Graham said: “By taking a collaborative approach to product development we’ve been able to identify gaps in the market which will add value for prospective investors.
“At Hodge we have an appetite to lend and a willingness to help. Every application is assessed on a case-by-case basis to ensure we take a flexible approach, and we’ll be utilising our in-house surveyors to review less conventional properties. Having this capability means we can give intermediaries a good steer as to whether or not the property will be acceptable.”
With the Hodge Holiday Let mortgage:
- There are no minimum income requirements
- The maximum age at the end of the mortgage term is 95 years
- Landlords can become a super host by advertising on Airbnb
- We can accommodate day 1 re-mortgages
- Clients can stay in the property for up to 90 days per year
- We lend on up to 4 holiday-lets
- We lend on up to 4 multi-units (up to 4 multiple letting units on one title)
- Lending up to £1.5m at 75% LTV
Here’s what the specialist advisers think:
“Hodge has entered the Holiday Let mortgage market with well thought-out criteria, designed to gain market share quickly. As a specialist in the market, we’re looking forward to working with Hodge, and if their launch criteria is an indicator of where they’re heading with this, watch this space.” Mark Lanario, Drake Mortgages
“There’s no such thing as a standard Holiday Let and Hodge understands that. They have a team of underwriters who want to listen providing flexibility at every stage and a product that ensures as many criteria are covered as possible.” Mark Stallard, House and Holiday Home Mortgages
If you have a client who’s looking for a holiday let mortgage, visit our holiday let hub to find out more.