Bath Building Society is one of only a few lenders to offer holiday let mortgages for people who want to buy a property to rent as a holiday let. Limited Company products are also available. We will consider remortgaging an existing holiday let property for home improvements or purchase of another property. Personal use of the property is permitted for up to 60 days and we will allow the property to be let out as an Airbnb during periods when the property is unoccupied.
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Our Standard Variable Rate (SVR) is currently 7.99% variable (effective from January 1st for existing customers). There may be a limit on how low your interest rate can fall. This is called an ‘interest rate floor’. The interest rate floor applicable to your loan will be specified in your loan documentation.
The mortgages listed below move on to our Standard Variable Rate (SVR), 7.99% variable after the initial rate period (effective from January 1st for existing customers).
We will pay a gross procuration fee of 0.4% on all new introduced business and 0.3% on all product transfers. The fee is usually paid within five working days following completion. Procuration fees may vary for our recognised Clubs & Packagers.
For full repayment of a 5 year fixed product, you will pay 3% of the outstanding balance in years 1, 2, 3 & 4; 2% in year 5, plus a Closing Administration Fee (currently £100).
For overpayments of a 5 year fixed product, you will pay 3% on any amount exceeding your 20% limit in year 1, 2, 3 & 4, 2% in year 5.
For full repayment of a 2 year fixed or discounted product, you will pay 3% of the outstanding balance in the first year and 2% in the second year, plus a Closing Administration Fee (currently £100).
For overpayments of a 2 year fixed or discounted product, you will pay 3% on any amount exceeding your 20% limit in the first year and 2% in the second year.
| Loan: | Size: Minimum £50,000, Maximum £500,000 at 75% and £500,000 to £1,000,000 at 70% Term: Minimum 5 years, Maximum 40 years. Repayment Type: Capital Repayment, Interest Only |
|---|---|
| Property: | Minimum value is £100,000. The property must be in England, Wales or Mainland Scotland, Shetland, Orkney, Arran, Bute, Skye, Harris & Lewis, Mull and Islay and be of standard construction. No properties on sites. Maximum 5 bedrooms. |
| All applicants: | Must be UK residents. Minimum age 21. No maximum age, subject to income in retirement. |
| Income: | Household income must be at least £30,000. |
| Rental: | The calculation is based on the actual or expected rental on an AST basis. Rent must cover 125% of the ‘stressed mortgage payments’ for basic rate tax payers, or 145% for higher rate tax payers. The stressed mortgage payment is based on the product rate +2% or 5.5% whichever is higher. |
| Underwriting: | We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk. We will consider holiday lets throughout England and Wales subject to acceptance by the Society’s valuer. |
| Other information | You must be able to service your existing commitments from income without recourse to the rent from this property. If you have a Buy to Let or Holiday Let portfolio, you will need to demonstrate that this is self-funding. |
Mortgage Conditions
Mortgage Conditions Scotland
Craig, Roberts McBain
Gail, Mortgage Sure Ltd
Emma. G3 Mortgages
John, Virtue Financial
Andy, Together FSL
Clark, Wiser Mortgage Advice
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