Let’s say that you are trying to secure a holiday let mortgage for your beautiful Cornish cottage. Today, you have two main choices:
- go directly to a single mortgage lender; or
- use a mortgage broker.
Let’s look at how both work and consider the dynamic of these options…
Success through specialisation
As the digital broker model becomes more mainstream, we are now seeing some organisations splintering off to focus on specific skill areas, such as Buy to Let or Holiday Let mortgages.
HCM is one of those businesses and we are pioneering the space for raising affordable mortgage finance for short term and holiday let properties. Let’s look at how such specialisation can benefit the customer:
Holiday let mortgage broker vs general mortgage broker
- Holiday let mortgage brokers understand the nature of the holiday letting business, for example, how booking revenue is priced and, quite fundamentally, which cottages will work well as successful holiday lets and which cottages might struggle.
- The application process for a holiday cottage mortgage requires the broker to obtain and analyse certain specialist information. Getting that data wrong or presenting that information poorly can jeopardise a customer’s application.
- Holiday let mortgage brokers focus on mortgages for holiday lets – nothing else – no distraction, just pure specialism. As mortgage experts, they have detailed understanding of the lender’s criteria, their stress tests, and how they assess rental income as part of their affordability calculations.
Taking a holistic viewpoint, holiday let mortgage brokers, like HCM, talk the same language as the holiday letting agents, property owners and lenders, meaning they act as the link between all three parties to facilitate the application process – thus, resulting in a higher chance of success for everyone.
Holiday Let Mortgages. Done.
Holiday Cottage Mortgages Limited is an Appointed Representative of Julian Harris Mortgages Limited, Julian Harris House, Musgrove, Ashford, Kent, TN23 7UN, which is authorised and regulated by the Financial Conduct Authority (FCA). Julian Harris Mortgages Limited’s FCA Register number is 304155. The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk
Your home may be repossessed if you do not keep up repayments on your mortgage. Pure holiday let, buy to let and commercial mortgages are not regulated by the FCA. Non-standard applications may attract a broker fee of up to £995.