Capital Finance Group
Holiday Let Mortgages
A holiday let mortgage funds the purchase or refinance of a property let out on a short-term basis to holidaymakers. Because income can be seasonal, lenders assess these differently from standard buy-to-let, often looking at projected weekly rental income across the year.
Speak to a Property Finance SpecialistHoliday Let Mortgages
Lender appetite for holiday lets varies, particularly by location and property type. We will help you understand how lenders are likely to assess the income and find options that suit both the property and how you intend to use it.
Who it suits
- Buyers of a property in a tourist area to let as a furnished holiday let
- Owners converting an existing property or second home into a holiday let
- Investors adding short-term lets to a wider portfolio
- Those refinancing an existing holiday let
How it works
- Affordability is often based on an assessment of expected rental income in low, mid and high seasons
- Some lenders allow limited personal use of the property each year
- Loan-to-value levels are commonly up to around 75%, depending on the lender
- Interest-only and repayment options may be available
Things to consider
- Income can be seasonal, so build in a buffer for quieter months and void periods
- Check local planning rules and any restrictions on short-term letting
- Tax rules for holiday lets have changed in recent years, so take specialist tax advice
- Some arrangements, particularly where you or your family use the property, may fall under regulated mortgage rules
- The property is used as security and may be repossessed if repayments are not maintained
Looking to buy or refinance a holiday let? Speak to an expert to explore what lenders will consider.
Finance is subject to status and lender criteria.
Discuss holiday let mortgages
Looking to buy or refinance a holiday let? Speak to an expert to explore what lenders will consider.
Speak to a Property Finance Specialist