Planning to finance a short-term rental property?
A holiday let mortgage can help you finance a property you plan to rent out as short-term holiday accommodation. It may be for a dedicated investment property, or a property you also want to use yourself for part of the year.
These mortgages work differently from standard residential or buy-to-let mortgages. Lenders may look at expected rental income, seasonal demand, occupancy assumptions, deposit size, property type and how the property will be used.
As independent holiday let mortgage advisers, we can help you compare options from a wide range of lenders and explain the key details clearly, so you can make a more informed decision.
What we’ll consider before recommending a holiday let mortgage to you:
Understand your plans
We’ll get to know the property, your deposit, expected rental income and how often you plan to let it out or use it yourself. This helps us understand what may be possible.
Compare suitable mortgage options
We’ll compare suitable products, considering the rate, fees, deposit requirements, affordability, lender criteria and overall cost.
Guide you through the process
When you’re ready to apply, we’ll help with the paperwork, explain what lenders may need and keep you updated as your application progresses.
Why holiday let lending needs a more detailed review
Holiday let lending is usually more specialist because income can vary throughout the year. Lenders may consider projected low, mid and high season rental income, typical occupancy and whether the property is likely to generate enough income to support the mortgage.
You may need a larger deposit than with some other mortgage types, and some lenders may limit how often you can stay in the property yourself.
There may also be extra costs to consider, such as maintenance, cleaning, insurance, management fees, empty periods and tax. We’ll help you understand the routes available and the responsibilities involved.
Here’s how we can support your holiday let plans:
Holiday let purchases
If you’re buying a holiday let, we can help you understand what lenders may look for and which mortgage options could support your plans.
Holiday let remortgages
If your current deal is ending, we can help you compare whether switching lender, staying with your current lender or restructuring borrowing may be suitable.
Airbnb and short-term lets
If you plan to use Airbnb or another short-term letting platform, we can explain how this may affect lender criteria and available mortgage options.
Unusual or specialist properties
From cottages and coastal homes to more unusual properties, we’ll help you understand how lender criteria may apply to the property you have in mind.
Buy-to-let vs holiday let mortgages
We can explain the differences between buy-to-let and holiday let mortgages, including how affordability, rental income and lender criteria are assessed.
Ready to talk through your holiday let mortgage needs?
Whether you’re buying your first holiday let, expanding your plans or reviewing an existing mortgage, we can help make the process feel clearer.
Book a free consultation with one of our independent holiday let mortgage advisers today and we’ll be in touch to discuss your options.
Important information:
We offer a free initial consultation to discuss your goals and next steps. If you decide to go ahead with advice, charges may apply – these will be explained before you commit. We offer a comprehensive range of mortgages from across the market, but not deals that you can only obtain by going direct to a lender. Remember your property may be repossessed if you do not keep up repayments on your mortgage. Mortgage products can change or be withdrawn at any time and are subject to underwriting. If the property is used as a holiday let or investment property, different lending criteria, tax rules and affordability requirements may apply. Tax treatment depends on individual circumstances and may be subject to change.