| Holiday let mortgages, until recently, were quite a | | | | business there are some tax benefits, however |
| 'niche' product. However, they are becoming a lot | | | | your holiday home must meet some basic |
| more popular now due to more and more people | | | | requirements. Usually it will be considered a holiday |
| choosing Britain as a holiday hotspot. And as any | | | | let if it is furnished and is available for people to |
| financially savvy investor will tell you, a holiday let | | | | rent at least 140 days every year. You must also |
| mortgage attracts more tax breaks than a | | | | be able to let it commercially, as opposed to |
| traditional buy to mortgage, so buying a holiday | | | | letting friends and family rent it cheap, for at least |
| home can prove to be a wise decision. | | | | 70 days every year. |
| The holiday let mortgage is generally excluded | | | | Short term lets are usually a period of no longer |
| from the standard buy to let mortgage schemes | | | | than 31 days and you are not allowed to let the |
| that are available. This is because the holiday | | | | holiday home to the same person for longer than |
| home is generally seen as a business, which is | | | | a period of 31 days in any year. |
| how these tax breaks can be earned. | | | | You will also be able to claim some expenses |
| So what do you need to know when considering | | | | relating to the letting of the holiday home as a |
| a holiday let mortgage? Well, as with most other | | | | way to reduce the amount of tax you have to |
| mortgages, there are rules and guidelines that | | | | pay. The Inland Revenue will expect you to |
| need to be adhered to when taking out a holiday | | | | declare how much rental income you have made |
| let mortgage and when you finally own your | | | | on your self assessment tax return. |
| holiday home. | | | | While owning a holiday let can be very profitable, |
| Criteria for meeting the loan requirements do | | | | when it comes to starting out and getting a |
| vary from lender to lender. However, generally | | | | holiday let mortgage, it makes sense to visit a |
| speaking the maximum size which you are usually | | | | specialist mortgage broker. They can take the |
| able to borrow will be down to the amount of | | | | strain from your search for the ideal mortgage |
| rental income that you have coming in or will be | | | | and provide invaluable help and advice along the |
| assessed on rental and personal income. | | | | way too. |
| With holiday home letting being classed as a | | | | |