Independent finance service Moneyfacts says increasing numbers of people are keen to explore alternative investment options - with holiday lets a likely favourite.
Citing research from the Original Cottages holiday letting company, Moneyfacts says that in the light of poor returns from the likes of traditional savings accounts, some 63 per cent of those questioned in a survey said they would consider holiday lets.
According to Moneyfacts there were just 74 holiday let mortgage deals from 14 lenders available to investors in August 2020, but this has more than doubled to 186 deals from 25 lenders now.
“The expansion in choice within this niche market comes at a time when demand for staycations is surging” says Moneyfacts.
Hannah Cooper, regional head of property recruitment for Original Cottages, says: “Staycations have driven demand for holiday lets as more people than ever are holidaying closer to home, presenting a great investment opportunity. Whilst our research revealed there is an appetite to invest in a holiday let, well over a third are worried about not having enough time to manage the property and over a fifth are concerned by the level of admin work required.”
Holiday let mortgages work similarly to buy to let ones, except there are additional criteria for these loans which allow borrowers to let out the property to holiday makers.
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