Based in the south west of England, MHBS Specialist Lending Manager, Rohan Hardeman, has helped lots of intermediaries with holiday let enquiries. Here he provides answers to some of the most frequently asked questions and explains why an MHBS holiday let mortgage could be the ideal solution for your clients.
What is a holiday let mortgage?
Holiday let mortgages are designed for people who are buying, or own a property, that they intend to rent out as holiday accommodation. Often they let the whole property, sometimes just part of it.
This type of loan is suitable for landlords who rent to multiple tenants throughout the year, with each arrangement being for a short period of time (up to a maximum of 28 days).
With an unregulated holiday let mortgage, it’s important to remember that whilst the owner of the property is permitted to use it occasionally, it can’t primarily be a holiday home for their personal use. It has to be available for letting for a minimum of 210 days a year.
What type of cases do MHBS accept?
The MHBS holiday let range is suitable for purchase and remortgage scenarios and includes products for both simple and complex cases. Lending between £200k and £5m, we can also create bespoke solutions for cases that fall outside our standard criteria, so it’s always worth getting in touch if you have an unusual or quirky enquiry.
What would be considered a complex holiday let?
Our complex products are suitable for cases involving unique or more challenging circumstances for the borrower, the property or a combination of the two.
For example, it could be a non-owner occupier, a customer borrowing into retirement or a client looking for a joint borrower, sole owner arrangement.
Complex properties include listed buildings, residences with planning restrictions that limit the use to holiday let and cases where the security requires large-scale refurbishment.
To give you an example, not long ago I received an enquiry about a listed farmhouse with three barns converted into holiday lets and 50 acres of land leased to a farmer – there were lots of complexities to consider but I’m pleased to say we were able to find a solution that was acceptable to the client.
Another thing worth mentioning is our residential products with consent to holiday let for up to 24 weeks a year. Pre-pandemic, these were very popular with homeowners who wanted to rent out their property whilst they spent some time abroad – I’m expecting to see more of this type of case as the world gets back to some kind of normality!
What if my client’s income is complicated, would you consider that?
Yes, we’ve experienced many different scenarios and consider each case on an individual basis. So for example, we’re willing to consider clients who are paid in a foreign currency and those with multiple sources of income – such as gifted deposits, bonuses, pensions, SIPP and investments.
In terms of the security, is there anything else I should be aware of?
We lend on properties across England and Wales.
It’s also worth remembering that we accept studio flats if they are situated in a prime London location and have a minimum floor area of 30 square metres. They need to have a minimum value of £500k and at least 60 years plus the term of the loan left on the lease.
Is there anything else that’s unique about the holiday let products from MHBS?
Unlike some lenders, we’re happy to accept Airbnb rentals. This can be really useful for clients planning to rent out an annexe.
We also offer regulated loans and I was able to help with an enquiry recently where the applicants planned to reside in the property for more than four weeks a year.
A customer also needs a regulated loan if they plan to let the property as a holiday home in the short term before eventually moving in themselves – we see this type of scenario quite often.
What can I expect when I work with MHBS?
In a nutshell, we add the human touch needed to ensure your cases proceed from application to offer as quickly and smoothly as possible. We have considerable knowledge and expertise and work closely with intermediaries to find the right mortgage solution for their clients.
We’re really proud to have won a 2022 Feefo Gold Trusted Service Award in recognition of our outstanding level of service. Here’s just one of the comments we’ve received about our holiday let products.
“Holiday let purchase for an ex-pat client and the whole process was very smooth from start to finish. From the initial chat with my BDM to submitting the application and being able to speak with the underwriter. A fantastic service.” Vincent Corcoran, Gordon Blair Financial Services
You can check out all the comments we’ve received from intermediaries at feefo.com.
How can I find out more?
If you’d like to know more about our holiday let range, please get in touch with me, Rohan Hardeman, or any other member of the team on 01858 412345. You can also take a look at a recent case example in our news section.
We look forward to hearing from you!
Article details are correct as at 7 June 2022. For our latest product information and criteria please talk to your Specialist Lending Manager.