Monday, May 24th, 2021
As the UK slowly lifts the various COVID-19 related restrictions, many are wondering whether the increase in holiday let purchases recorded over the last 12 months will continue, or, whether the yearnings by many for a holiday in sunnier climes will ultimately stem the tide.
Hodge, a specialist in holiday let mortgages, has indicated that based on its recent experience, demand for UK holiday homes and holiday lets has steadily increased since the pandemic took hold early last year. This trend has not gone unnoticed by other lenders and the number of holiday let mortgage products have increased during this period, with building societies generally leading the way.
That said, it is our experience at Caboodle Finance that many people do not always use traditional holiday let mortgages when buying these properties. Instead, many choose to raise capital against their own residential property or alternatively may use another investment property they own as collateral. Whilst this choice may be made for a variety of reasons, for many, the main driver is likely to be interest rates, as in most cases a residential mortgage secured against a persons’ home or a traditional buy to let mortgage secured against an existing rental property will provide a more competitive rate than most holiday let mortgage products.
Although holiday letting can prove to be lucrative with the right property in a good area, it is not a sector that should be entered lightly. Alongside a significant amount of research and due diligence regarding the area, seasonal demand, and likely rental yields, the value of professional mortgage advice from a reputable mortgage broker cannot be overestimated when considering either growing or restructuring any portfolio.
With this in mind, if you would like some no-obligation mortgage advice or would simply like to discuss your individual circumstances and requirements in more detail, call one of our in-house experts here at Caboodle Financial Services of Sutton Coldfield, Birmingham on 0121 308 9114 or, alternatively, just click HERE to email us via the form on our website and one of our friendly team will be in touch as soon as possible.
In the meantime, we very much look forward to hearing from you.
Caboodle Financial Services Ltd
Mere Green House
46-48 Mere Green Road
West Midlands B75 5BT
Telephone: 0121 308 9114