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Precise Mortgages has taken the step to launch into the holiday buy to let market, as well as improving the criteria for its multi-unit range.
The specialist lender conducted syndicated research which found that 9 per cent of landlords with over 20 properties own holiday lets in the UK. A further 9 per cent then own holiday lets abroad.
Of the landlords interviewed as part of the survey, holiday lets were marked out as the second most popular property type available to own in addition to standard residential portfolios.
The specialist lender has stated that it will consider UK applications on houses and flats currently utilised as holiday lets. However, this is providing there are no planning or occupancy restrictions.
Precise Mortgages are offering a core buy to let range for experience individual and limited company landlords who want to invest in a holiday let. This range has rates starting from 2.77 per cent and will allow landlords to borrow up to £500,000 to a maximum 70 per cent LTV or opt for a bridging finance loan.
The criteria changes are being released to help more customers obtain their desired product, following research which found that 12 per cent of landlords own multi-unit properties. This rises to 34 per cent for those who have a portfolio of over 20 properties.
Landlords investing in multi-unit opportunities can now have up to six self-contained units under a single freehold. They will be able to borrow up to £750,000 at 75 per cent LTV and up to £1m at 70 per cent LTV.
Managing director of Precise Mortgages, Alan Cleary, said: ‘The UK is proving increasingly popular among both British and overseas tourists which is generating attractive rental returns for holiday lets. The new criteria across the buy-to-let mortgage and bridging finance ranges will help more customers secure the product they need.’