Question

How and why do lenders treat properties that are subject to holiday lettings differently to those...

How and why do lenders treat properties that are subject to holiday lettings differently to those that are permanently let?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Properties which are subject to holiday lettings do not have a stable income throughout the year. Also the income is seasonal. The rental income is higher during the holiday season and is higher than permanently let houses. However at other times, the income will be very low or may even be zero. This creates the risk for the lender since there is great the probability of default by the borrower in such properties. Hence the lender will generally ask for a higher interest rate to compensate for the greater risk involved.

Add a comment
Know the answer?
Add Answer to:
How and why do lenders treat properties that are subject to holiday lettings differently to those...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT