A mortgage designed to allow the purchase or re-mortgage of residential holiday lets.
People looking to purchase or re-mortgage a residential holiday let in Scotland.
Mortgages are available for residential properties. All mortgages are subject to a suitable property valuation, the minimum being £50,000.
For property purchases in Scotland, we can normally use the property valuation contained in the sellers’ Home Report as long as it is no more than 12 weeks old.
We can lend up to 80% of the purchase price or property valuation (whichever is lower).
The minimum loan size is £50,000 and the maximum is £350,000.
Applicants must be at least 18 years old on application and the maximum age at end of the mortgage term is normally 85.
Minimum mortgage term is 5 years and maximum term is 40 years.
How much can I borrow?
Maximum loan 80% of lower valuation or purchase price.
- Up to 50% of holiday let rental income may be included in the affordability calculation where there is a track record.
- Rental income must be verified.
- Minimum income (non-property related) for at least one applicant must exceed £40,000, or £60,000 joint income.
- Capital and Interest OR
- Interest only – available up to 75% of the property value or purchase price (whichever is lower) with a maximum loan size of £350,000. We will ask for confirmation that the borrower has an appropriate repayment vehicle in place at the time of application as well as periodically throughout the life of the mortgage. Acceptable repayment vehicles are endowment policies, stocks and shares ISAs, pension lump sums and second/investment properties.
A first charge will be taken over the property being purchased as security for the mortgage lending.
Higher Lending Charge:
For lending above 80% of the property purchase price or valuation a Higher Lending Charge may be payable.
Where a Higher Lending Charge is applicable this can generally be added to the mortgage.
Overpayments of up to 10% of the mortgage advance can be made per annum. An early repayment charge, equivalent to 3% of the total amount overpaid, will apply if overpayments exceed 10% of the loan amount in any 12 month rolling period during the first 3 years of the mortgage.
Buildings Insurance must be arranged prior to funds being released.
FOR INTERMEDIARY USE ONLY