Download the article – What’s your favourite Christmas movie…
No. 1 film promotes festive getaways – holiday let bookings continue to boom
Us Brits do like a Christmas movie, what’s your top festive film? According to a poll in the national press* ‘The Holiday’ comes in at No.1 (36.6%); followed by Home Alone (19.8%) and in 3rd place, Love Actually (19.0%). So what’s this got to do with me as a mortgage broker I hear you ask?
Those familiar with The Holiday’s storyline know it’s not only the perfect rom-com but also provides a huge prompt to book your dream, festive holiday cottage getaway. The property featured in the film is picture postcard perfect!
You may not find the love of your life by booking a holiday let, but the film does show the many festive benefits of booking this type of holiday. Holiday let owners must rub their hands with glee every time it’s shown!
Holiday rentals are particularly popular at Christmas as they can offer a festive and homely atmosphere, are considered a good option for couples and larger gatherings, and can be found in a wide range of locations. This popularity pushes up rental charges making it a lucrative option for owners over Christmas as it does during other peak holiday times. But why is there so much interest from investors in this category more generally and what opportunities does this create for brokers?
The benefits of owning a holiday let
As well as potential high yields there are tax incentives for landlords. Furnished holiday lets have a unique standing with taxation, and therefore gain from certain benefits and allowances usually only available to normal trading businesses. These points alone make holiday lets attractive for owners and continue to provide a stream of opportunities for brokers as finance is needed to fund these properties. As a specialist UK holiday let lender the Harpenden team has never been busier with broker enquiries!
Sourcing the right holiday let mortgage
As well as competitive mortgage rates we offer some nice additional features for borrowers. One big plus for our customers compared to other lenders is the 90-day owner usage. Investors can enjoy the property for a big junk of the year should they wish to.
In addition, our products don’t have the restrictions regarding location like many other lenders, another real plus. Coastal areas or rural retreats are often the ‘go-to’ but we will consider a wide range of options. We recognise that city centres, cultural hot spots and sporting destinations are also good holiday let locations so we will also lend on properties found in these less traditional holiday areas.
Holiday let investors invariably have a complex financial profile with multiple income streams. The Harpenden team has the expertise and experience to manage complex cases delivering specialist solutions many other lenders can’t service.
Every policy is manually underwritten by an expert, which enables a flexible approach. We consider many forms of complex income including pensions, trust income, maintenance and investment as well as standard employed and self-employed income.
Harpenden Building Society Holiday Let mortgages – key features at a glance:
• 90 days personal usage allowance per annum
• Airbnb considered
• We lend in town and city centres as well as coastal areas
• We lend on properties above commercial units
• Top slicing
• Up to 3 properties on one title considered
• 75% LTV available on IO and 80% available on repayment
So if your customers are looking to buy the idyllic country cottage as seen in ‘The Holiday’ or a less traditional holiday let option, our team will be pleased to speak with you about their lending requirements.
*The Sun
Jean Errington, Business Development Manager, Harpenden Building Society