Will UK ‘Staycations’ Continue to Boost the Holiday Let Market?

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.

Holiday Buy to Let Mortgages Increasing in Popularity

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.

Finding the Best Mortgage Option

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.

Get Expert Mortgage Advice before Making your Decision

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.

How Can We Help?

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.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

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Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

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Caboodle Financial Services Ltd, registered in England at Mere Green House, 46-48 Mere Green Road, Sutton Coldfield, West Midlands B75 5BT (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

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