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Holiday Home Mortgage Inquiry in Wales
Confirmed
In Short: A couple considering a £280,000 holiday home in Pembrokeshire seeks advice on mortgage options.
A couple looking to buy a £280,000 holiday home in Pembrokeshire are considering whether they can secure a mortgage to cover the purchase and running costs, including occasional letting during school holidays. Nick Mendes, mortgage technical manager at John Charcol, advises that the property's intended use is crucial in determining the type of mortgage a lender will consider. They hope to rent out the property for 15 to 20 weeks a year to help cover expenses.
Mortgage rates have risen to their highest level in over a year, reaching 6.71% for a 30-year fixed mortgage, according to Freddie Mac. This increase could impact the couple's ability to secure a mortgage, especially considering their existing £310,000 residential mortgage on their main home with seven years remaining.
Mendes explains that letting the property part-time would be treated differently from running it as a full holiday let, which could affect the type of mortgage needed. The couple is seeking clarity on whether their current mortgage situation would allow for such a property and how the rental income might be factored into their application.
The i Paper reports that some lenders may permit occasional letting on a second home, but only with their consent and within strict limits. This adds complexity to the couple's plans and highlights the challenges of navigating the current mortgage market turbulence.
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- Have you got a mortgage-related question you need answering?
- Would we be able to get a mortgage on the holiday home given we would only be renting it out part of the time?
- Answer: The starting point is how the property will be used because that is what determines the type of mortgage a lender is likely to consider.
- The average rate for a 30-year fixed mortgage rose to 6.71%, up from 6.66% last week, according to Freddie Mac’s latest Primary Mortgage Market Survey.
- RELATED: Ranked: The best US cities for home buyers in 2026, according to data The average rate was 6.5% a year ago.
- It was the highest average rate since July 31, 2025, when the 30-year mortgage rate reached 6.72%.