Precise enters holiday let mortgage market
Precise Mortgages is the latest lender to enter the holiday let mortgage market.
The product will be available to experienced landlords providing they have owned a buy-to-let property for at least 12 months. The minimum personal earner or pension annual income of £40,000 required for the main applicant and it is available for private ownership and Limited Company applications.
There is a minimum property value of £150,000 in London and £50,000 in other parts of the country. There is a maximum loan size of £500,000 and landlords will need a 30% deposit to qualify.
The property valuation report will include a standard buy to let rental figure based on the property being let on a six-month AST basis. This will be the figure Precise uses to make a rental assessment.
The property can be a fully furnished house or flat, including studio flats. The property must be an established holiday let and Precise will require evidence that it has been advertised online or on social media.
Aaron Strutt, product director at Trinity Financial, says: “Most of the high street lenders do not provide holiday let mortgages but they are available through a selection of smaller lenders.
“Principality Building Society has some of the most competitively priced rates and a £20,000 or £30,000 minimum income to qualify. Applicants will need a 25% deposit to qualify and first-time landlords are accepted.”
According to recent research by BDRC among 681 National Landlords Association members, nearly one in 10 landlords (9%) with more than 20 properties own holiday lets in the UK. A further 9% own holiday lets abroad.
Call Trinity Financial on 020 7016 0790 to secure a holiday let mortgage