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Scarborough tests holiday mortgage market

10 October 2005
Scarborough Building society is offering a new holiday buy-to-let mortgage product, which Scarborough claims is the first self-funding mortgage available.

The mortgage aims to offer investors an easier way to purchase a holiday home since foreign properties are usually excluded from usual buy-to-let mortgages mortgage schemes.

Scarborough said that more and more people want to invest in property as they get older and low interest rates have made owning property possible for a lot of people who could not normally have afforded it.

A spokesperson said: "Holiday lets are no exception to this and, with the additional benefit of the valuable tax advantages holiday lets provide over buy to let properties, these new mortgages offer an exciting proposition for would be landlords".

To qualify for the new loan, applicants must be in paid employment and be able to put down 25 per cent of the purchase value.

They also must earn more than £25,000 a year and should be able to prove that the property can generate annual rent worth 250 per cent of the mortgage payment.

To read more about Buy-to-Let Mortgages, click here.

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