Holiday let mortgages
If you're considering letting a holiday property and need a mortgage to pay for it, but you're not quite sure where
to start then speak with our property specialists today, they'd be happy to offer their knowledge and point you in
the right direction.
With over 25 years' experience in the industry, we've helped thousands of happy owners get their holiday let
business off the ground and are on hand daily to give you expert advice and guidance on everything you need to know
about letting a successful holiday property.
We'll also be able to provide you with a good idea on what you can expect to earn from your holiday let, so you can
make sure you're getting the best out of it, as well as offering all the support and advice needed for mortgage
applications. Get in touch today and speak to our property experts for free advice.
Advice on buying a holiday let
With our wealth of knowledge and years of experience in the holiday letting market, we can support you in making
the perfect investment, but whatever stage you're at, we can help. You could have seen a property online but
aren't sure if it will work as a holiday let - we'd love to have a look at it with you and give you an idea of
its potential. Or you may just be thinking about holiday letting and need to understand how to approach
it - our experience will help give you confidence in the decision you make.
For expert advice on buying a holiday let, contact our friendly property specialists; they're here to help you
make the right choices.
Do we need a specific holiday let mortgage? What is the difference between a
buy-to-let and a holiday let mortgage?
Wondering if you need a mortgage specifically for letting a holiday property? The quick answer to this question
is yes. A holiday let mortgage is designed specifically for properties that let for short periods of time,
meaning they're often much more flexible when considering your property's income.
Over the years, we've helped thousands of owners set up their holiday home and we can give you all the support,
guidance and knowledge you'll need.
If you have any questions and need any help or guidance then contact our property specialists, they're here to
help. Over the years we have built up a strong understanding of what the requirements are in this area and are
here to support you with your plans.
Can I offset my mortgage against holiday rental income for tax?
Can I offset my mortgage against holiday rental income for tax?
As a holiday let is classed as a property letting business, if you qualify under the Furnished Holiday Letting
rules, you can currently offset the interest on your holiday let mortgage against the rental income you make for
tax purposes.
So for example, if your holiday let made £12,000 in one year and the interest on your mortgage for that
year was £9,000, you would only be liable to pay tax on the £3,000, according to your own tax rate.
However relatively recent changes to government legislation means that reforms to this system are due to be
phased in from April 2017 and fully effective by 2020. Landlords and holiday let owners will no longer be able
to deduct their mortgage interest from their rental income when determining the profit on which to pay tax.
Instead, the government will be applying a tax-credit equivalent of 20% to the mortgage interest. So you would
pay your normal tax rate on the whole rental amount, minus the 20% credit on the mortgage interest.
Our property experts have the knowledge and experience to guide you seamlessly through this part of your holiday
letting journey. Give them a call today for no-obligation advice.
Sources:
http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11965438/Buy-to-let-tax-will-cut-our-income-by-25pc.-How-much-will-YOU-lose.html
http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10946303/How-to-maximise-your-buy-to-let-profits-by-paying-less-tax.html
http://www.taxexpert.co.uk/services/taxation-services/property-tax/what-types-of-interest-can-be-offset-against-my-property-income/