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


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.  



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