Are you considering dipping your toe into the holiday let market? It’s an exciting venture with the potential for impressive returns. But what if you need to dip out just as quickly? One concern that often comes up is mortgage exit penalties – but thankfully, Hodge Bank offers a solution that’s perfect for first-time holiday let investors (writes Howard Reuben, Principal, HCH Financial Services).
Understanding mortgage exit penalties
Most fixed-rate mortgages come with early repayment charges (ERCs), which can make selling your property during the fixed term costly. These charges help lenders recoup the cost of offering you discounted rates early in the mortgage term. While this is standard, it’s often a sticking point for holiday let investors who are unsure about long-term commitments.
Hodge’s early repayment promise
Here’s where Hodge’s holiday let mortgage stands out. They’ve introduced an 'Early Repayment Promise', which means you can sell your property and repay your mortgage in full without incurring ERCs – even during the fixed-rate period. This unique feature provides unparalleled flexibility and peace of mind, letting you test the waters in the holiday let market without worrying about financial penalties if you decide to sell.
Why choose Hodge for your holiday let mortgage?
Hodge’s holiday let mortgage isn’t just about flexibility; it’s about offering tailored solutions to meet your needs. Here’s what else they bring to the table:
Airbnb-friendly: Properties listed on Airbnb are welcome.
Owner stays: Enjoy up to 90 days of personal use annually.
Flexible payment options: Choose between interest-only or repayment options.
Multiple properties: Borrow on up to three holiday lets.
Broad eligibility criteria:
Properties valued at £100,000 or more.
Up to three acres of land.
Flats and maisonettes (minimum 35 square metres).
Properties above or next to commercial premises (subject to conditions).
Accessible lending terms:
Available for borrowers aged 21–95.
Up to £1.5 million at 75% LTV.
No minimum personal income requirement.
Day one re-mortgages available.
Geographic reach: Covers England, Scotland, and Wales (restrictions apply in London and Edinburgh).
A trusted partner in 2025
At HCH Financial Services, we’re committed to helping you make informed decisions for your holiday let business. Whether you’re just starting out or looking to expand, our team provides expert advice tailored to your unique goals.
As we enter 2025, we look forward to continuing to support your holiday let journey with mortgage and insurance insights, updates, and bespoke advice.
Ready to take the next step?
Book your consultation today and start building a prosperous future in the holiday let market. Visit us at HCH Financial Services to get started.
Here’s to a healthy, happy, and successful New Year from all of us at HCH Financial Services!
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