It is quite possible for those who are thinking of buying a holiday home to borrow money for this. The loan is largely like a regular mortgage with some minor differences.
Basically it is the same type of loan which means you have the holiday home as collateral for the loan.
This part of which the holiday home is collateral is called a mortgage loan and is the most advantageous loan that most of us will ever take.
What distinguishes a loan to a holiday home compared to an ordinary mortgage is that it is common for people not to receive an equally high loan-to-value ratio. For ordinary mortgages, a maximum of 85% is the loan-to-value ratio, while for loans to holiday homes it is often a maximum possible with 75%. However, this is not something that must always apply, so there may be lenders offering a loan-to-value ratio of up to 85%.
The remaining 15 – 25% of the cost of the home must thus be paid for by putting in a cash contribution and if you do not have enough money saved then a top loan must be taken out.
The repayment period on the loan will together with the lender determine what suits you both best. If a top loan is needed, the repayment period on this will be around 15 years.
Tie the loan
In the same way as for a regular mortgage, you can choose to either have a variable interest rate (three-month interest rate) or to bind the loan up to 10 years. Thus, there is no difference here at all and interest rates will also be at the same level.
In the same way, you can of course also divide this with binding time. So if, for example, you want to have half the loan with floating interest rates and the rest with the bond, there is no problem. You and the lender will simply agree on what suits you best.