If a property is bought specifically as a holiday let, is it a BTL mortgage or does it have to be a special holiday let mortgage?
Finance for holiday lets are usually provided by lenders on a commercial, not buy to let, basis. Lending is mostly determined on the historic (and potentially projected) rental income. Properties which have not previously been holiday lets are trickier to finance because there is no track record, so a lending decision would be made on the strength of the proposal including experience of the applicant and location of the property.
There is a very small number of lenders who will consider financing holiday lets with a buy to let mortgage product. In these cases the property would have to be without any letting restrictions and the rent to interest cover would be based on the income of a normal Assured Short-hold Tenancy agreement.
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