Hodge launches holiday let mortgage for sharing economy
UK: Specialist lender Hodge has launched a new holiday let mortgage so that properties can be let out via rental platforms such as Airbnb and owners can fill their 90-day annual occupancy limit.
The holiday let mortgage will allow customers to lend up to £1.5 million and has a maximum lending age of 95. Early repayment fees are waived if the landlord sells the property and pays off the mortgage in full.
Recent research conducted by Hodge found that more than a third of Brits would like to own a holiday home, however 74 per cent were unaware of the tax advantages which allow owners to deduct mortgage costs and expenses from profits before calculating income tax.
Hodge business development director Emma Graham said: “We saw a gap in the holiday let mortgage market for a customer friendly product that allows owners to stay at the property for longer period, as well as the ability to use letting sites such as Airbnb. We set about developing a product that will allow the maximum flexibility for customers looking to buy their little place in the British sun.
“We conducted some research into the holiday plans of 2,000 Brits and were surprised to discover that a staggering 74 per cent of those quizzed did not know the tax advantages of owning a holiday let.
“It seems the holiday let market is also set to grow, as the research also found that more than a third of Brits (36 per cent) would like to own their own holiday home, with nearly half (46 per cent) aged between 25 and 34 would like their little staycation haven.
“Staycationing isn’t just a phase – our research found that 48 per cent of people went on a staycation in 2019, and of those planning to stay-cate in 2020, 22 per cent said that concerns about the environment are leading them to stay in the UK for their holidays. A further 25 per cent cited uncertainty around Brexit as a reason for not going abroad next year.
“We wanted to help our customers make the most of this trend and buy a property they could rent out to people holidaying in the UK. We have seen an increase in enquiries from those looking to buy a holiday let so we’ve developed a product that will allow the maximum flexibility when trying to do this,” she added.
For more information, visit the Hodge website here.