How does a holiday let mortgage differ from a buy-to-let mortgage?

Holiday let mortgages assess income based on weekly rental rates and seasonal occupancy, whereas buy-to-let mortgages typically use long-term monthly rental income. Lending criteria are often different.

Can I use the holiday let property myself?

Yes, many holiday let mortgages allow for a certain amount of personal use of the property, but there are usually limits to ensure it remains primarily a business investment.

What deposit do I need for a holiday let mortgage?

Lenders typically require a minimum deposit of 25% to 30% for a holiday let mortgage, though this can vary depending on the lender and your circumstances.

Are there any tax benefits for holiday lets?

Properties that qualify as Furnished Holiday Lets (FHLs) in the UK can benefit from certain tax advantages, such as capital allowances and business rates relief, but specific criteria must be met.

Holiday let mortgage

The short answer

Lending for holiday and short lets

Price from: On quote
Time on site: 1 to 2 hours

What you get

You get a consultation with a specialist broker who can help you find the best holiday let mortgage for your investment property.

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Enter your postcode to see the cheapest price for Holiday let mortgage near you and the next available times.

When do you need a Holiday let mortgage?

You need a holiday let mortgage if you are buying a property with the intention of renting it out as a holiday home for short periods. This could be a new purchase or refinancing an existing property.

What happens on the day

A specialist broker will discuss your plans for the holiday let, including potential occupancy rates, seasonal income, and your financial situation. They will explain different mortgage products, deposit requirements, and potential tax implications.

How to prepare

Proof of identity and address
Details of your income and outgoings
Proof of your deposit funds
An estimate of seasonal rental income and occupancy rates
Information on the property's location and features

How to improve your result

Choose a popular holiday destination for your property.
Provide attractive amenities and a high-quality finish.
Research local occupancy rates and pricing strategies.
Consider using a reputable holiday let management company.

Why it is useful day to day

A holiday let mortgage allows you to invest in the lucrative short-term rental market, providing a flexible income stream and the potential for personal use of the property. It capitalises on the demand for staycations and tourist accommodation.

Why we ask these questions

We ask about your property and its potential as a holiday let, including location, expected rental income (peak and off-peak), and occupancy rates. This information is crucial for lenders to assess the property's income generation and overall viability.

Frequently asked questions

Often needed alongside

Recurring

Holiday & short-let insurance

Cover for Airbnb and holiday lets

From £350.00Get quotes

Fixed price

Property photography

Photos, video and virtual tours

From £100.00Book now

Smart & high-security locks

Keyless entry, anti-snap

From £150.00Get quotes

Recurring

Holiday let management

Bookings, guests, turnovers

From £150.00Get quotes