Case Studies - Buy-to-Let Mortgages
This mortgage for holiday lets offers flexible terms up to 10 years, with a loan amount up to £10 million, useful ICR tools, and expert underwriting support throughout the process.
Latest Case Studies
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Case Studies - Buy-to-Let Mortgages
Finding solutions for credit history issues for a BTL investment
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Focusing on the whole picture for foreign investors in the UK buy-to-let market
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Going through the details for a challenging BTL investment
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Case Studies - Buy-to-Let Mortgages
Helping a first time landlord with a multi unit freehold property purchase
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Helping a landlord with tenants in situ cover an existing charge
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Internal teamwork for a complicated deal with multiple properties
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Case Studies - Buy-to-Let Mortgages
Providing a way forward for a BTL investor with missed payments
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Returning offshore borrower looking to overcome tight BTL deadlines, with speed and security
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Case ScenariosCase Studies - Buy-to-Let Mortgages
Specialist financial options for planning permission difficulties
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The options available to landlords with missed payments on their records
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The tools at our disposal to help with LTV limits and tricky business plans
Read case studyHoliday Let Mortgage Criteria
- Loan amount from £150.000 to £10m
- Up to 75% LTV
- Tracker and fixed interest rate options (2/3 years)
- First charge only
- Max term: 10 years with option to leave earlier
- No ECR after the inital term period
- Completion time from 10 days
- For property in England and Wales
Application process to complete mortgages for holiday lets
Step 1: Loan Enquiry & Indicative Terms
Contact us by phone, email, or online—whichever is most convenient for you. Our underwriter will need some details to offer an indicative tier, rate, and loan size. We provide various tools to optimize the Interest Cover Ratio (ICR) for your needs.
- Response time: Within 4 hours of your enquiry.
Step 2: Underwrite & Issue DIP
If you agree with the initial terms, we’ll request some documents to complete the underwriting process. We will then issue ‘credit approved terms’ as a Decision in Principle (DIP), validated by our Credit Committee for accuracy.
- DIP issued: Typically within 24 hours
Step 3: Valuation
Once the DIP is signed and the valuation and admin fees are paid, we proceed to value the property. Your dedicated underwriter will choose the best terms and timescales from our panel to suit your specific situation. The valuation verifies the security details on which the DIP is based.
- Instruction: Typically within 24 hours of fees clearing.
Step 4: Legal Documentation
At this stage, our solicitors take over to issue contracts and move the case towards completion. We utilize a trusted panel to ensure swift and timely completions, keeping you informed throughout the process.
- Instruction: quickly and only with firms we know and trust.
Step 5: Loan Drawn Down
The loan is now ready to be utilized. An MFS residential buy-to-let mortgage can be used for houses, flats, HMOs, and more.
- Timeframe: Depending on your circumstances, funds can be issued within a week from the initial enquiry.
Buy-To-Let Mortgages for Holiday Lets –
All you need to know:
Main features
The main features of the MFS mortgages for holiday lets include:
- Borrow up to £3m for a single holiday let property and up to £10m for a property portfolio at 75% LTV.
- Suitable for both first-time and experienced investors.
- Offers both fixed and tracker rate options.
- Higher loan sizes achievable through deferred interest options, rolled-up/deferred months, and top slicing.
- Flexibility with rolled interest, e.g., roll two months of interest for refurbishments or securing tenants.
- 10-year terms with early exit possibilities.
- Suitable for different holiday let property types like apartments, cottages, luxury homes, AirBnBs & more
- Specialised financing for individuals as well as limited companies and expats, foreign nationals, trusts, and offshore companies.
- Ideal for exit strategies, such as transitioning from an MFS bridging product to a long-term BTL product.
How do mortgages for holiday lets work?
A holiday let mortgage is a type of loan designed for investment properties that owners rent out to generate income, often targeting vacationers and short-term renters through platforms like Airbnb. These properties can attract a variety of tenants, including families, groups of friends, or solo travelers.
Typically, mortgages for holiday lets are interest-only. This means that monthly payments cover only the interest on the loan, with the original principal amount needing to be repaid at the end of the mortgage term. Owners can repay the principal by selling the property, using savings, or refinancing with another lender.
Fees involved
Mortgages for holiday lets involve a few fees:
- Admin Fee: £199 per property, payable when you proceed to a property valuation.
- Product Fee: Starting from 2% of the loan amount, this fee is paid when the mortgage is redeemed.
- External Fees: These include valuation and solicitor fees. Every property requires a valuation by a surveyor, and a solicitor must be involved to ensure all details are correct and ownership is properly recorded.
Is this an interest-only mortgage?
Our mortgages for holiday lets are interest-only. This means you’ll pay only the interest back during the loan term. To enable you to take up a larger loan, we have options to defer up to 2% of payments and/or roll up to 9 months of payments and provide greater flexibility.
Do I need a deposit?
We offer buy-to-let mortgages for holiday lets with up to 75% LTV. The maximum loan depends on the value of your property.
We recommend to try our buy-to-let mortgage calculator to check how much you can borrow for your holiday let mortgage. It will give you some idea of the max. loan amount you can get with MFS.
Re-mortgaging
Yes, it is possible to remortgage with MFS. If you’re thinking about switching from another provider, moving from a different financial product like a bridging loan, or applying for an additional flexible buy-to-let mortgage, we will review your application and provide suitable solutions whenever possible.
How to apply
We are here for you. If you have a case or property, just get in touch with us on +44 (0)20 7060 1234, via email info@mfsuk.com or via our live chat, where you can speak to one of our underwriters directly. As we underwrite from day one, we will ask you a few initial questions, but then can issue your indicative terms within 4 hours. If you’re happy with them, we can get the ball rolling and send you the DIP.
