There are now 173 more mortgage options on the market for holiday let landlords than there were just three months ago, according to the respected market monitor Moneyfacts.
This comes after holiday let product choice took a nosedive in the aftermath of the disastrous Liz Truss mini-Budget, with only 26 lenders offering deals in October.
Now in total there are 411 different holiday let mortgage options on the market today, along with eight more lenders. Most of these lenders are building societies, covering both fixed and variable rate options.
Moneyfacts says that due to the pandemic, there was soaring demand for UK-based holidays, enticing many buy to let investors to diversify. Now it says a cost of living crisis may encourage more domestic holidays, too.
It reminds landlords that holiday lets will need to be rented for a minimum of 70 days a year and available to be rented out for 140 days a year, and homeowners will need to show evidence of their lettings and meet certain criteria to qualify for business rates relief.
These new rules are due to come into force this April and are designed to protect legitimate investors.
But it cautions that the cost of redeveloping a property to a high standard - required by most holiday let renters - may be more now than in previous years “so it is imperative prospective landlords seek advice to compare their options and consider a fixed rate mortgage deal for peace of mind.”
The service adds: “Investors picking a property with their head over the heart is extremely wise, and in-depth research must be done on locations and listing services to ease any concerns over letting exposure and seasonal dips.”
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