Many of us in the UK strive to own a holiday home, whether by the beach or in an area of outstanding natural beauty many dream of having a place to ‘get away from it all’. So when looking to take the next step, where do you start with mortgage finance?

It probably hasn’t gone un-noticed that the over the last few years mortgage finance has become increasingly difficult to obtain as the financial markets are still struggling with the aftermath of the ‘credit crunch’, so whilst finance is still available criteria has tightened up considerably.

So what are the main points to consider when making an application to a lender for a second home mortgage?

Firstly what are your main aims in relation to the property, will it be mainly for personal use or brought purely as an investment? If you are looking at the property as an investment then you will need to look to lenders that are happy to consider holiday lets, this is due to the way that the borrowing figure is calculated and the basis on which the property is let. Typically buy to let providers look for the property to be let on an AST basis, as you will most likely be letting the property on a short term basis this may be outside of lenders criteria.

What deposit do you have to put down? At present lenders are looking for you to put down a deposit in the region of 25-30%. As a general rule of thumb the higher the deposit the more attractive the rate you will obtain.

Does the property have any restrictive covenants? Some new properties may come accompanied with restrictive covenants, for example the home must only be used for second home purposes or perhaps you may only able to be able to inhabit the property for 11 months of the year. Any issue that may affect a properties resale-ability may cause potential lenders a problem.

What other liabilities do you have? If you are buying a property for your own personal use and therefore potential rental is out of the equation, lenders will look to make sure your income is adequate to cover all outstanding liabilities including any main residential mortgage.

So whether you’re looking for a new investment or that dream holiday home for the family perhaps the best piece of advice when looking for mortgage finance is to seek out advice from a whole of market mortgage adviser.

Stephen Wrigley Omnis Financial Solutions provide whole of market mortgage advice to individuals across the UK. Specialising in arranging finance for those looking to purchase holiday homes we work along side both clients and developers alike'. Tel. 01179 568 267 E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it Website: www.omnisfs.com