Holiday Let Mortgages

Finance for holiday properties

Holiday lets can generate strong seasonal income, but they need a specialist mortgage. Standard buy to let products do not allow short-term letting. We work with lenders who understand the holiday rental market and assess applications based on projected seasonal income.

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We explain fees, risks and next steps before any application.

Your home may be repossessed if you do not keep up repayments on your mortgage. Some specialist or buy-to-let finance may not be regulated by the FCA.

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FCA Regulated

Short-term lets

Seasonal income

Up to 75% LTV

How holiday let mortgages work

A holiday let mortgage is a specialist product for properties that will be rented on a short-term basis to holidaymakers rather than on a standard assured shorthold tenancy. The property must be furnished and available for letting for a minimum number of weeks per year.

Lenders in this market assess income differently. Rather than a single annual rent figure, they look at projected weekly rates across peak, shoulder and off-peak seasons. Some lenders accept bookings evidence from platforms like Airbnb or Booking.com, while others use independent rental projections.

What qualifies as a furnished holiday let?

HMRC requirements

To qualify for Furnished Holiday Lettings (FHL) tax status, the property must be available for letting at least 210 days per year and actually let for at least 105 days. Lettings to the same person for more than 31 consecutive days do not count.

Personal use

Most lenders allow you to use the property yourself for a limited number of weeks per year. This is a key attraction for many buyers who want a holiday home that also generates income when they are not using it.

Location matters

Lenders are more comfortable with properties in established holiday areas such as the Lake District, Cornwall, the Yorkshire Dales or the Scottish Highlands. Properties in less obvious locations may still be eligible but could face a smaller choice of lenders.

Rates and deposits

Holiday let mortgage rates are typically slightly higher than standard residential, reflecting the seasonal nature of the income. Expect:

Fixed rates from around 5% upwards
Deposits of 25% or more (75% LTV maximum)
Interest-only and repayment options available
Some lenders accept projected income, others need booking history

Tax position changes

The Furnished Holiday Lettings (FHL) tax regime is being abolished from April 2025. Holiday lets will be taxed in the same way as standard buy to let properties. This means mortgage interest relief will be limited to a basic-rate tax credit. If you are considering a holiday let purchase, speak to us about how this affects the numbers.

Common questions

Can I use it myself?

Yes, most lenders allow personal use for a set number of weeks per year, typically 4 to 8 weeks. The property must still meet minimum letting thresholds to maintain its holiday let mortgage status.

Do I need a management company?

Not necessarily. Some lenders prefer to see a professional management arrangement in place, while others are happy for you to self-manage through platforms like Airbnb. We match you with a lender that fits your plans.

What about Airbnb properties?

Many holiday let lenders now accept Airbnb and similar platform income. Some want to see a track record of bookings, while others will accept a professional rental projection. We know which lenders take which approach.

Is council tax or business rates?

Holiday lets that meet the letting thresholds can be rated for business rates instead of council tax. In some areas this qualifies for small business rates relief, meaning you pay nothing. Check with your local authority for the specific thresholds.

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