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Holiday Let Mortgages

A holiday let mortgage could help you realise your dream of owning a second home - perhaps a coastal cottage, a farmhouse in the rolling countryside, or a lakeside retreat for a UK getaway. Designed for people who want to borrow money for buying a property to be let out short term to tourists, holiday let mortgages can provide a boost to your income as well as a place to escape for a break.

The UK is a desirable holiday destination for overseas tourists, even more so due to the weakening pound, and the ‘staycation’ is also a more attractive option for UK holidaymakers. It seems the Great British Holiday is making a comeback, and renting out a holiday let property could capitalise on this. With beautiful countryside and coastal locations it’s no wonder more of us are looking to explore it, whether for a weekend break or a lengthier stay over the summer. 

Mortgages for holiday let landlords

We’ve extended our buy to let mortgage options to include a range of holiday let mortgages for applicants specifically looking to purchase or remortgage a holiday let property in our heartland area of Suffolk, Norfolk, Essex, Cambridgeshire, Bedfordshire, Hertfordshire and Buckinghamshire. All products are available with a maximum 80% Loan To Value (LTV), on capital and interest, part and part or interest only repayment basis. First time landlords of at least 30 years of age are welcome to apply, and if an applicant is already a buy to let or holiday let landlord, the minimum age is lowered to 21. Applicants must already own or mortgage their own home.

Our holiday let mortgage products

Holiday Let 2.80% 2 Year Discount Rate 80% LTV

About
Fees
Apply
Representative Example
  • VARIABLE RATE of 5.74% with a discount of 2.94% for 2 years then changing to Ipswich Standard Variable Rate (currently 5.74%)
  • 5.4% APRC
  • Available for direct applicants in England and Wales, selected intermediary partners and intermediaries based in our heartland - Suffolk, Norfolk, Essex, Cambridgeshire, Bedfordshire, Hertfordshire and Buckinghamshire
  • The property must be located in our heartland area - minimum property value £100k, minimum loan £75k

24049, 24050, 24051

Completion Fee Application Fee (Payable with application and non-refundable) Valuation Fee (Payable with application) Higher Lending Charge CHAPS (Fee for transfer of funds to solicitor) Maximum Loan Amount
£950 £199 Based on property valuation. Remortgage: FREE (up to max property value £1m) - £35 £500k
  • No charge for overpayments of up to 50% of original loan amount - early repayment charge period ends 2 years from completion
  • Overpayment of 50% or above - early repayment charge is 1% of the overpayment
  • Redemption - early repayment charge is 1% of the original loan amount

To apply, please speak to one of our expert Mortgage Consultants, based in Ipswich, on 0330 123 0773 - we're happy to discuss your application over the telephone or, if you'd prefer, we can arrange to meet with you at one of our 9 branches across Suffolk.

In the meantime, you may find it useful to look at our mortgage calculator to get an idea of what your monthly payment may be.

To apply for this product visit our Apply and Track section, or give our intermediary sales team a call on 0330 123 1073.

Representative example (this information is based on a typical application and not to your individual circumstances. It does not contain all of the details you need to choose a mortgage):

A mortgage of £266,250.00 payable over 25 years on our Standard Variable Rate currently at 5.74% with a discount of 2.94%, giving a current rate payable of 2.80% for 24 months and then our Standard Variable Rate for the remainder of the mortgage term would require 24 monthly payments of £1239.64 followed by 276 monthly payments of £1,646.85. The total amount payable would be £484,815.96 made up of the loan amount plus interest (£217,046.96), an application fee of £199, a completion fee of £950, a valuation fee of £240, a mortgage funds release fee of £35 and a mortgage exit fee of £95.

The overall cost for comparison is 5.4% APRC representative.

[This representative example is based on assumptions that the loan would start from 31 July 2019]

Holiday Let 2.95% 2 Year Fixed Rate 80% LTV

About
Fees
Apply
Representative Example
  • FIXED RATE of 2.95% until 31 December 2021 then changing to Ipswich Standard Variable Rate (currently 5.74%)
  • 5.4% APRC
  • Available for direct applicants in England and Wales, selected intermediary partners and intermediaries based in our heartland - Suffolk, Norfolk, Essex, Cambridgeshire, Bedfordshire, Hertfordshire and Buckinghamshire
  • The property must be located in our heartland area - minimum property value £100k, minimum loan £75k

29171, 29172, 29173

Completion Fee Application Fee (Payable with application and non-refundable) Valuation Fee (Payable with application) Higher Lending Charge CHAPS (Fee for transfer of funds to solicitor) Maximum Loan Amount
£950 £199 Based on property valuation. Remortgage: FREE (up to max property value £1m) - £35 £500k
  • No charge for overpayments of up to 50% of original loan amount - early repayment charge period ends 31 December 2021
  • Overpayment of 50% or above - early repayment charge is 3% of the overpayment
  • Redemption - early repayment charge is 3% of the original loan amount

To apply, please speak to one of our expert Mortgage Consultants, based in Ipswich, on 0330 123 0773 - we're happy to discuss your application over the telephone or, if you'd prefer, we can arrange to meet with you at one of our 9 branches across Suffolk.

In the meantime, you may find it useful to look at our mortgage calculator to get an idea of what your monthly payment may be.

To apply for this product visit our Apply and Track section, or give our intermediary sales team a call on 0330 123 1073.

Representative example (this information is based on a typical application and not to your individual circumstances. It does not contain all of the details you need to choose a mortgage):

A mortgage of £189,000.00 payable over 25 years initially on a fixed rate until 31/12/2021 at 2.95%, and then on our Standard Variable Rate currently at 5.74% for the remainder of the mortgage term would require 27 monthly payments of £1,414.84 followed by 273 monthly payments of £1,846.65. The total amount payable would be £543,885.13 made up of the loan amount plus interest (£242,336.13), an application fee of £199, a completion fee of £950, a valuation fee of £270, a mortgage funds release fee of £35 and a mortgage exit fee of £95.

The overall cost for comparison is 5.4% APRC representative.

[This representative example is based on assumptions that the loan would start from 20 September 2019]

 

 

Holiday Let 3.10% 3 Year Fixed Rate 80% LTV

About
Fees
Apply
Representative Example
  • FIXED RATE of 3.10% until 31 December 2022 then changing to Ipswich Standard Variable Rate (currently 5.74%)
  • 5.1% APRC
  • Available for direct applicants in England and Wales, selected intermediary partners and intermediaries based in our heartland - Suffolk, Norfolk, Essex, Cambridgeshire, Bedfordshire, Hertfordshire and Buckinghamshire
  • The property must be located in our heartland area - minimum property value £100k, minimum loan £75k

29174, 29175, 29132

Completion Fee Application Fee (Payable with application and non-refundable) Valuation Fee (Payable with application) Higher Lending Charge CHAPS (Fee for transfer of funds to solicitor) Maximum Loan Amount
£950 £199 Purchase: based on property valuation. Remortgage: FREE (up to max property value £1m) - £35 £500k
  • No charge for overpayments of up to 50% of original loan amount - early repayment charge period ends 31 December 2022
  • Overpayment of 50% or above - early repayment charge is 3% of the overpayment
  • Redemption - early repayment charge is 3% of the original loan amount

To apply, please speak to one of our expert Mortgage Consultants, based in Ipswich, on 0330 123 0773 - we're happy to discuss your application over the telephone or, if you'd prefer, we can arrange to meet with you at one of our 9 branches across Suffolk.

In the meantime, you may find it useful to look at our mortgage calculator to get an idea of what your monthly payment may be.

To apply for this product visit our Apply and Track section, or give our intermediary sales team a call on 0330 123 1073.

Representative example (this information is based on a typical application and not to your individual circumstances. It does not contain all of the details you need to choose a mortgage):

A mortgage of £189,000.00 payable over 25 years initially on a fixed rate until 31/12/2022 at 3.10%, and then on our Standard Variable Rate currently at 5.74% for the remainder of the mortgage term would require 39 monthly payments of £1,439.29 followed by 261 monthly payments of £1,832.47. The total amount payable would be £535,916.98 made up of the loan amount plus interest (£234,367.98), an application fee of £199, a completion fee of £950, a valuation fee of £270, a mortgage funds release fee of £35 and a mortgage exit fee of £95.

The overall cost for comparison is 5.1% APRC representative.

[This representative example is based on assumptions that the loan would start from 20 September 2019]

 

 

Holiday let mortgage criteria

  • Maximum term 25 years
  • We welcome first time landlords aged 30+, or for existing landlords with two year’s experience our minimum age is 21
  • Portfolio landlords or limited companies are not eligible for these products
  • Applicants are permitted to own a maximum of three rental properties (holiday let and buy to let) inclusive of the mortgage they wish to apply for
  • No maximum age restriction
  • Total loan to individual/joint borrowers not to exceed £750,000
  • Minimum loan of £75,000 and a maximum loan cap of £500,000 apply, with a minimum property value of £100,000
  • Owners may occupy the mortgaged holiday let property for personal use for up to 60 days per year
  • The potential rental income will be calculated by a Holiday Letting Agent and a letter is required to confirm the known weekly rental income, or anticipated revenue during low, medium, and high season. An average will be taken and multiplied by 30 weeks to give an indicative annual figure. If there is a minimum two-year history of occupancy the average will be multiplied by 35 weeks
  • At least one applicant must have a minimum salary of £25,000 gross p.a 
  • Applicants' employed income, pensions, investments, or additional sources of income can be taken into account when calculating affordability
  • No HMOs, properties in holiday parks or Airbnb lettings
  • Property must be of single dwelling and standard construction

Your home may be repossessed if you do not keep up repayments on your mortgage.