Holiday let mortgages

Independent and expert advice for your holiday cottage or second property
contact us

We have been specialising in holiday let mortgages since 2006 and have accumulated a deep understanding of all types of second home finance.

This knowledge allows our brokers to provide a comprehensive level of advice and assistance to our clients which goes beyond just selecting the cheapest interest rate.

We work with clients in so many different ways to help secure their holiday cottages and second homes. Our primary role will be to research and select the most appropriate mortgage product. Often a clients circumstances, or occasionally the property, means that it falls outside of some lenders criteria and we have to find the lenders that can lend.

However, as an independent mortgage broker we do deal with all of the holiday let mortgage lenders.

Holiday letting and serviced accommodation is a growing part of the UK property market. The lenders tend to be small and specialist, rather than well known high street banks. We have built well established relationships with these lenders over the many years we have been active in this market.

Holiday let mortgage availability

  • purchases and re-mortgages of holiday let properties up to a maximum loan to value of 75%, including new build flats
  • purchases of second homes with limited holiday letting use to 85% LTV
  • limited company holiday let (trading company or SPV)
  • first time buyer loans available
  • max loan size (subjects to limits above) assessed on rental income or a combination of rental and personal income
  • non-traditional construction available. Minimum value £150,000
  • properties in Scotland
  • Standard lending up to £1.5m at 75% LTV, low rates
  • Non-standard lending, including expats, upto £15m at 75% LTV
  • multiple self-contained holiday lets on a single title
  • mixed use/multiple unit holiday lets, where the owner is resident
  • holiday let development/conversion and bridging finance
  • capital raising on a first or second charge basis available
  • purchase and refinance of holiday let businesses
  • Older borrowers acceptable, including in retirement

Why use a holiday let broker?

It is, of course, possible to arrange a buy to holiday let mortgage yourself, direct with a lender. This may initially seem like the most sensible option but we would (obviously) urge some caution.

We have been advising clients on their holiday let mortgage needs since 2006. We do not know of another broker that has specialised in this area for so long, back in 2006 this market was merely in it’s infancy with very few lenders willing to take part.

Our broking team have long established relationships with the right lenders and of course we have independent access to all of the lenders. It’s this trusted relationship along with our deep understanding of each lenders holiday let mortgage criteria that enables us to successfully find the best home for our clients finance requirements.

An adviser’s knowledge and experience is not just useful to find the best interest rate or lowest fixed rate holiday rental mortgage. They will add value by suggesting options and strategies to help make your need for finance a reality and in a timeframe that works for you. This is what we aim to do for each and every one of our clients.


We have added a lot of information and research for clients that we hope you will find useful. From articles, case studies, guides and knowledge pages. We are here to help you purchase your UK holiday let and we have helped many, many clients to do just this since 2006.

It’s common for clients to approach lenders direct (sometimes brokers too) and then be told that their application is not possible. This does not mean that your dream is dashed!

There are so many nuances that can affect how a lender sees a holiday rental mortgage application. Queries over the land registry title, expat borrowers, self-employed income. All in a days work for us!

Please call us and speak with our brokers. We may be able to either approach a different lender or to suggest a different strategy.

Holiday let resources

Useful information and guides to help you holiday let more successfully.

More info

Holiday let guide

A comprehensive guide to holiday let mortgages and holiday letting in the UK.

More info

Holiday let mortgage criteria

The lending criteria for holiday lets is unique. Here we explain the main differences.

More info

Holiday Let Mortgage FAQ

Can I get a mortgage for a holiday let?

Mortgages for UK holiday lets are becoming more commonplace and lenders now compete for your business. You will need a minimum deposit of 25% for a holiday cottage mortgage, be able to prove your earnings and aged over 18.

How do you finance a holiday home?

The way a short term rental property is financed can differ between borrowers. Normally the deposit (25%) is provided from savings and then the balance is borrowed on a buy to holiday let mortgage, specifically designed for a holiday letting property. This is then paid from the rental income, and occasionally topped up from personal earnings.

How much deposit do I need for a holiday let mortgage?

To buy a holiday home in the UK you will need a minimum deposit of 25% of the property value. Some lenders may ask for a higher deposit. The higher deposit reflects the higher risk as it is an investment property.

How much can I borrow for holiday let?

It is possible to borrow 75%-80% of the property value or purchase price for a UK holiday let with the remaining 20%-25% provided as a cash deposit. Borrowing less may offer more mortgage choices (as not all lenders offer 75%) and the possibility of lower rates.

Can you get a mortgage on a holiday let?

Morgages for holiday lets are available for suitable properties located in the UK. The property should be either freehold or long leasehold. When assessing a mortgage application the lenders look at both the applicant and the property. A letting agent will need to confirm the possible rental income for the holiday let.

Can I live in my holiday let?

One of the advantages of a furnished holiday let is that you can use it for your own holidays. However, you cannot live in it permanently. The property needs to be commercially let as holiday accommodation for at least 105 days a year – the rent must be charged at market rate and not at cheap rates to friends and family.

What income do I need for a holiday let?

Generally speaking the minimum earned income should be £20,000

What about a Limited company holiday let mortgage?

Using an SPV or Limited Company to purchase holiday lets is now commonplace. There’s a bit more work involved and the setup of the SPV and deposits has to be just right. Our experienced brokers will guide you through the best way to structure your application.

Is a holiday let classed as a business?

Holiday lets, or furnished holiday lets, are classed by HMRC as a business rather than an investment. This means they are treated differently for income tax and capital gains tax. You can read more about the tax treatment on our Holiday Let Tax page.

What qualifies as a furnished holiday let?

To make sure your property qualifies as a furnished holiday letting, it must be: in the UK or EEA furnished available for commercial letting to the public, as holiday accommodation, for at least 210 days a year commercially let as holiday accommodation for at least 105 days a year – the rent must be charged at market rate and not at cheap rates to friends and family, and a short term letting of no more than 31 days. You can read more about the tax rules here

Why Choose Us?

  • Holiday let experts since 2006
  • Independent Mortgage Specialist
  • Professional and knowledgeable staff
  • Exclusive mortgage schemes
  • Access to all the best rates and deals
  • Practical & straightforward advice
By letting your holiday home out to holidaymakers, you can generate a valuable extra income, while your property investment will benefit from capital gains and income tax relief options that are unavailable to buy to let investors