Everything you should know about holiday let mortgages

In England alone, there are more than 200,000 properties that were bought as holiday lets or second homes. Beauty spots such as the Lakes, the Peak District, Wales and the Norfolk coast are very popular locations and some people choose to buy a holiday let abroad.

If you fancy buying your own holiday-let property, you can take your pick from stunning locations around the UK. A holiday let can earn good money every year - and you can have a second home in a stunning location once your mortgage is paid off.

It could be the perfect place to spend your summers or even retire to when the time comes. In fact, 80 per cent of people who buy holiday-let properties have admitted that it is their dream to live in the home once they retire.

If you will be letting out your second property as a holiday let, you may think that a buy-to-let mortgage will serve your purposes nicely. However, most of these mortgages don't allow you or your family to reside at the property or you to let them as a holiday let. You may in fact be in breach of your conditions of mortgage.

Holiday let mortgages whilst few and far between, tend to be much more flexible and may allow you to spend time living in the property as well as letting it out. You still need to be able to prove that the rent will more than cover the mortgage though.

Lenders can lend up to 80 per cent of the value of the house and the amount you can borrow will be determined by either a combination of your personal income or how much rent the property will bring in.

Some properties will have usage restrictions too, so it is advisable to check that they can be lived in or used as a holiday let before you go ahead with your purchase.

If you would like more advice about holiday let mortgages, call Capital Fortune on 0845 3630 430 or visit www.capitalfortune.com.