Although the income from holiday lets can produce an excellent annual income, securing mortgages for such properties is notoriously difficult. However, as smaller lenders are more amenable to providing holiday property mortgages, and tax relief for buy-to-let is slashed by the government, it may be that more people will invest in holiday properties.

In the past, many people have been put off the idea of owning a holiday home by the difficulty obtaining a mortgage, as many lenders refuse to lend in these circumstances. One property agent in the West Country, Michael Kleinman of PRH in Penzance, says that he has sold a number of highly desirable properties, only for these sales to fall through due to a lack of funding.

One mortgage broker, David Hollingworth, states that the demand for holiday properties is increasing as people consider their income during retirement. In addition to providing a source of income to supplement the pension, it also means that the family can have a holiday each year.

One lender which will provide a mortgage for a holiday home is the Leeds Building Society, which has a range of suitable products. The size of the mortgage may be based on expected rental income if the property has previously been used as a holiday let.

Mortgage advisers have knowledge of the various lenders who are willing to lend in these circumstances, and are qualified to provide advice due to undertaking CeMAP training. Scotland and other popular holiday locations have plenty of holiday properties, providing an opportunity to boost pensions in retirement.

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