BTL or Holiday Let - Mortgages

[dan_w]

Hi all

New investor to the property market,  wondering if I can use a BTL mortgage for a Holiday Let property? I have heard that technically you are not supposed to do that, and that in fact you should seek out a specific holiday let mortgage, but that they are then much harder to attain and at worse rates?

Anyone brave enough to advise!? 

Many thanks in advance 
Dan 

[kirsty_c]

Dan

If you are intending to run a holiday let setup then I think you have answered your own question in what you are supposed to do. No reputable person in the mortgage field is going to advocate you being untruthful to a lender in the application. 

Holiday let products generally carry stricter criteria and higher rates reflecting the higher risk nature of running such a setup.. vs a BTL which is much more straightforward and priced accordingly. If you are a first time investor this will likely restrict lender options further as Holiday let products are usually aimed at experienced investors.