Holiday Let Mortgages


A holiday let mortgage allows clients to purchase a property they can rent out to people on a short-term basis for holidays. It differs from a buy to let mortgage that expects rentals to be more long-term.  

This difference affects the way a lender calculates the affordability of a holiday let mortgage. With the holiday let mortgage the lender will take into account that the property isn’t always let out year-round and that rental income will fall and rise depending on whether it’s high or low season.

This means that a client who needs a mortgage for a holiday home is more likely to meet the lending criteria for a holiday let mortgage compared to a buy to let mortgage that assumes the property is rented out for six to 12 months at a time. 

We can lend up to 75% LTV on both our two year and five-year fixed rate mortgages with loans from £50,000 to £1.5 million. 

The actual amount we lend is determined by your client’s ability to afford the loan based on their expected holiday let rental income. 

Your client will need to show that the property can yield a minimum rental income of 145% of interest payments at 5.5%. We take an average of 30 weeks rental income using an average of the weekly high season, medium season and low season rental income figures they provide on the application form.  

Yes, as long as the whole property is rented out and it meets all our eligibility requirements. 

Yes, they can have up to four individual holiday let mortgages. We can also provide a single holiday let mortgage for up to four properties under one title.

Yes, your client can occupy the property for up to 90 days in any one year for personal use.  

Yes, the loan can be repaid at any time, but an early repayment charge will apply. We waive this charge if the property is being sold.  

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