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    What our clients say

    How do holiday let mortgages work?

    Holiday Let mortgages are designed for properties that are rented out on a short term basis at specific times of the year.

    Certain lenders consider holiday lets on a purely commercial standpoint, others are more flexible and allow own occupation too. This is typically for around 60 days per year.

    How much you can borrow is usually determined by the holiday rental income, similar to a buy-to-let mortgage. However, as the property is not let all year round to the same tenants, the criteria and calculations will be different and vary by lender.

    These mortgages are specifically designed to cater to the unique needs of holiday lets and provide the flexibility and affordability you need to make the most of your investment.

    Please remember your home may be repossessed if you do not keep up repayments on your mortgage. The Financial Conduct Authority does not regulate commercial finance and some forms of buy-to-let mortgages.

    How to get a holiday let mortgage?

    There are fewer providers on the market ready to offer holiday let mortgages and all lenders will have different rules. However, at Private Finance you are in good hands. We use our network of lenders and specialist knowledge to pair you with the most suitable lender and source the right mortgage for you.

    How is income calculated?

    For holiday let mortgages, letting agents will need to confirm the anticipated or known rental income during a low, medium and high season. Lenders will use this to take an average income and multiply this by approximately 30 to 35 weeks to give an indicative annual figure. Like a buy-to-let, the rent must exceed the mortgage, this could be by 145%-160% and stressed at an enhanced mortgage pay rate.

    Nowadays due to the cash flow that a holiday let often can provide, it is usually easier to achieve higher loan to values (generally up to 75%) on a holiday let than a buy to let property.

    What are the benefits of holiday let mortgages?

    There are several benefits to holiday let mortgages:

    • A select few lenders will allow you to live in the property for a certain number of days of the year
    • Owners can qualify for allowances related to furniture and fittings.
    • If your business incurs a loss, you can carry it forward to offset against profits in future years, reducing your tax liability
    • Profits from the business are considered as earnings for pension purposes.
    • Holiday lets can often be more cash flow positive than a buy-to-let investment in the current market
    • There can also be certain tax benefits*.

    *Please note, we are not tax advisors and the above does not constitute tax advice. We strongly recommend that you seek tax advice from a relevant professional where required.

    Specialist Mortgage Broker

    With first-hand landlord experience, our expert buy-to-let consultants have the in-house expertise to understand the challenges faced by landlords today. We pair this first-hand experience with vast industry knowledge to help you find an edge in today’s challenging market.

    Thousands of clients trust us with their buy-to-let mortgage needs.

    Expertise and Experience


    Our mortgage training program goes far beyond standard levels. From lender criteria, regulation, and legislation, to the wider financial market – we use this knowledge to tailor a solution that works for you.



    We’re an independent, whole-of-market specialist mortgage broker. We use over 175 different lenders, and access high-street, private banks and specialist lenders who lend on holiday lets mortgages to find the right solution for you.

    Quality Service


    With an average rating of 4.97/5 from more than 1,800 reviews, we offer an exceptional client experience. We insulate you from the rigmarole of the mortgage process, so that you can stay focussed on your day-to-day.

    Holiday Let Mortgages FAQs

    • How do holiday let mortgages compare to regular buy-to-let mortgages?

      Holiday let mortgages typically have higher long term costs as the interest rates are higher. However, owners of holiday lets can typically charge more than standard buy-to-lets as the rental period is shorter and individuals are charged by the day instead of by month. It is best to choose your holiday let in a popular destination where there is likely to be a higher occupancy rate.

    • What is the criteria for a holiday let mortgage?

      To be eligible for a holiday let mortgage, the property must usually be advertised as furnished, available to let for at least 210 days of the year, let out for at least 105 days of the year, and only be available for short term lets, no longer than 31 days at a time.

      Many lenders will also require a certain minimum income from other employment.

      Please note, lender criteria is subject to change.

    • Can a buy-to-let mortgage be used for a holiday let property?

      No, rentals for standard buy-to-let properties and holiday homes are very different, for example in the occupancy rate and the length of time a property is rented out for. A holiday home can be rented out for between a few days to a few weeks at a time, whereas a buy-to-let property can be rented out usually for a minimum of six months. Lenders are aware of this difference and offer more appropriate mortgages for holiday lets.

    • How much does a holiday let mortgage cost?

      Typical holiday let mortgage costs vary depending on a range of factors. This includes the size of the property and number of bedrooms, the location, access by foot, road and/or rail and the condition of the property.

      We can help you work out the costs based on your unique requirements and circumstances.

    Private Finance