Call us on 0344 346 3672
or arrange a callback

Should we buy a Holiday Home or a Buy To Let?

Posted on 16 March 2013 by Matt


Hi, I have a 60% mortgage on a property in my name. My partner (who currently has no mortgage or property and will be a first time buyer) and I want to buy a property together - maybe a holiday home for our use or maybe a buy to let. Which type of mortgage can we apply for jointly? I'm assuming we don't benefit from 1st time buyer due to my current property. What would be our max LTV ratio? Thanks Matt

Matt,

The type of mortgage we could get for you will vary depending on whether you want it for a Buy To Let, or as a Holiday Home for your own use. First Time Buyers for Buy To Let is also a very limited market, so in terms of lender choice, there will be more for you if you decide to buy a property for you to use as a second / holiday home.

With regard to the maximum Loan to Value (LTV) if yoru are looking at Buy To Let then most lenders cap the LTV at 75%, though there are a few that go to 80%. For a second home, it may be possible to go as high as 90%, though it is more likley that we'd be looking at around the 75% mark again.

If you'd like to talk through these options in more detail, then please let me know and I'll arrange a convenient time for you to speak with one of our consultants.  

Regards,

Simon

simon.collins@johncharcol.co.uk

More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


Legal

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.

John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.