yacht crew expat mortgages

Holiday Buy-to-Let Mortgage

Expat holiday buy-to-lets are getting more popular and profitable.

The rise in staycationing has fueled an increase the use of properties as holiday lets. Attracted by the potential returns and keen to diversify their portfolios, existing expat buy-to-let landlords are expanding their portfolios into holiday let, as are would-be investors who dream of owning a holiday cottage that will pay for itself.

As a result, intermediaries have witnessed a rise in mortgages for holiday let mortgages, i.e., loans for properties that will be rented out on a short-term basis, for at least part of the year to tourists – as a business. These commercial transactions are not difficult to administer but like all niche products, they do require a certain level of understanding.

The number of lenders in the market is relatively small, although this is changing. However, in recent years other lenders, including some specialist funders, have joined the fray.

So, not the largest selection in the world but certainly enough to find solutions to fit a variety of borrowing circumstances. It’s worth noting, that not all sourcing tools list holiday let mortgages in depth so if you are an expat and interested it would be wise to contact an independent broker.

For the most part, standard buy to let mortgages are designed for use on properties that will be let for a minimum of six months on assured shorthold tenancy agreements (ASTs).

As such, the majority of buy-to-let products do not cater for holiday accommodation and borrowers risk breaking the terms of the mortgage contract if they let the property out on a short-term basis.

This should not deter borrowers, however, as holiday let terms can actually be favourable.

Need some assistance?

As an Expat and you are looking for your first mortgage or contemplating a re-mortgage, please do call one of our fully qualified independent advisers who will be happy to help.