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Holiday let via company - mortgage companies


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I am currently in the process of buying my first property as a holiday let, and doing so through a company as the purchase vehicle. 

I obtained a mortgage via a broker; the lender is Keystone. However, the terms of the mortgage are very odd! The broker and lender are aware that the purchase is a holiday let, but the mortgage offer and standard terms are clearly for an AST. It includes various prohibitions on any occupancy by myself, family, etc at any point, or occupancy by more than one family etc. After back and forth they removed some of these from the offer terms and simply limited long term occupation (which is fine), but they are left in the standard mortgage terms. 

Has anyone else had experience of this with Keystone? Their whole product seems unsuited to a holiday let, not to mention has quite poor fees. 

Perhaps more helpfully, can anyone recommend a lender who offers products that are actually catered towards holiday lets, and allow purchase through a company? 

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Does the mortgage permit short term rentals? As long is the lender allows you to operate the property as a serviced apartment, then what is the issue?

Fees are a different question. For residential property, there's no justification to pay high fees to a broker

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Vin Gupta
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Some lenders will assess holiday let properties on an AST basis. I suspect the reason for this is to ensure the property is still viable if it was to revert to an AST basis in the future. Or indeed, it may just be to give the landlord the flexibility to let on either basis.

Again, lenders will differ with the conditions they attach to their holiday let mortgages. Some may allow owner-occupation for limited periods of time, whereas others may not allow this at all.

If a deal is competitive and it meets your requirements for owner-occupation etc. then normally you needn't be concerned. If Keystone aren't the cheapest lender there may be other reasons your broker has recommended them. This should have been clearly communicated to you if that were the case.

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