Capital Fortune is a national and
award winning mortgage, buy-to-let
and insurance broker.

Call today to speak to an expert

020 77 100 400

REQUEST A CALLBACK
Image
As Featured
Awards from
Our customers have rated our service
Feefo logoIndependant User Feedback98%
Shaun Norris - Purchase
Highly recommended as mortgage brokers for expats returning from abroad. Clear, helpful and straightforward advice at all stages of the process. ...Read More

Mortgages For Holiday Lets

Buying a holiday let might seem like a straightforward decision, but organising the mortgage finance is quite tricky. Depending on how you want to manage the property, the type of mortgage you need is different.

If you are planning to let out the property all year and not stay in it yourself, you might suppose that you would need a buy-to-let mortgage, however, this type of loan is not flexible enough to accommodate homes let out on a series of short-term lets to holiday-makers.

Image

What Our Customers Say

Samantha Morris - Purchase
Fantastic service - they made the process easy from start to finish. ...Read More
2 months, 5 days ago

Customer - Purchase
Capital Fortune has been professional, responsive, accurate and timely. In our efforts to obtain a mortgage in the UK from the USA, we had no personal experience. Capital Fortune has made the process much easier. ...Read More
2 months, 6 days ago

Frances Fernandes - Purchase
Peter Bartlett was completely responsive to any need or request of ours ...Read More
2 months, 15 days ago

Customer - Purchase
I am a British citizen working in the middle east and used capital fortune to procure a mortgage back in the UK. Their services l from start to finish was impeccable. Yes you pay for the service but you definitely ...Read More
2 months, 15 days ago

Find out more

Holiday Let Mortgage Flexibility

Typically, you would need a holiday let mortgage for this. This allows you to charge a higher rent for the months in the high season and school holidays for example, but flex these rents down in low season.

Potential Risks

Letting property out on this short-term basis can be really attractive, as usually you can earn a far higher annual rental income than you would by letting out the property on an assured shorthold tenancy agreement for 12 months. However, there are other risks to consider - with a long-term tenant, the risk that you don't receiver rental income one month is low. With a holiday let, there may be multiple weeks in the year that the property is empty.

However, you will still need to pay the mortgage each month, so the lender will want to see that you can afford to do this.

Image

How much can you borrow?

To work out how much you can borrow, the lender will also look at the actual income achieved on holiday homes in the area. It's also likely that you'll need a fairly large deposit as the number of lenders offering holiday let mortgages at a high loan-to-value (above 70 per cent) is small.

Image

Additionally, because of the risk that the property is empty for some of the year, you may be asked to show that you earn over a minimum amount - usually £20,000 a year - and that you can afford to repay all or part of the holiday let mortgage each month in addition to your other regular financial commitments.

Image

Speak to a specialist

Some lenders also want to see that you already own a home and pay your mortgage reliably.

It's a good idea to speak to a specialist about the options available, as often these mortgages are available from smaller, local building societies. Knowing which lender is likely to help you is important before you make your application as being unsuccessful can hurt your chances of being accepted by another lender

Find Out Current Best Rates

Property Value
£
Mortgage Amount
£
Reason for Mortgage
Mortgage Type
LenderInitial RateTypeForThenAPR*ERC*Fee
The Mortgage Works Intermediary BTL 2 Year Fixed 2% Fee CCN1.19%FixedMay-20234.74%4.4%31-May-2023 £2000
The Mortgage Works Intermediary BTL 2 Year Fixed 2% Fee Cashback CCN1.24%FixedMay-20234.74%4.4%31-May-2023 £2000
Santander UK Plc Intermediary BTL 2 Year Fixed £1499 Fee Porting CAN1.4%FixedJul-20233.35%3.8%02-Jul-2023 £1499
Santander UK Plc Intermediary BTL 2 Year Fixed £1499 Fee CAN1.4%FixedJul-20233.35%3.8%02-Jul-2023 £1499
Santander UK Plc Intermediary BTL 2 Year Fixed £1499 Fee (Scottish) CAN1.4%FixedJul-20233.35%3.8%02-Jul-2023 £1499
Santander UK Plc Intermediary BTL 2 Year Fixed £1499 Fee Porting (Scottish) CAN1.4%FixedJul-20233.35%3.8%02-Jul-2023 £1499
Leeds BS BTL 2 Year Fixed £1999 Fee BLH1.44%FixedJun-20235.59%4.8%30-Jun-2023 £1999
The Mortgage Works Intermediary BTL 2 Year Fixed £1995 Fee CCN1.44%FixedMay-20234.74%4.3%31-May-2023 £1995
Leeds BS RETENTION BTL 2 Year Fixed £1799 Fee Product Transfer BLH1.48%FixedJun-20235.59%4.8%30-Jun-2023 £1799
TSB BTL 2 Year Fixed £1995 Fee Purchase TSB1.49%FixedJun-20234.44%4.1%30-Jun-2023 £1995
Mortgage product availability is subject to status and availability. Although great care is taken to ensure that product details are as accurate as possible no liability can be accepted for errors or omissions.
*APR = Annual Percentage Rate *ERC = Early Repayment Charge
*These figures are only illustrative. An assessment of your needs will be confirmed before a recommendation can be made. A Key Facts Illustration, which is personal to your circumstances, will be provided if a recommendation for a mortgage product is made.

Best Discounted Rates

LenderRateType
There are no products found that meet the search criteria. Please contact us on 020 77 100 400 for further assistance.

Best 5 Year Fixed Rates

LenderRateType
There are no products found that meet the search criteria. Please contact us on 020 77 100 400 for further assistance.
Image

Get Guaranteed Lowest Rate Mortgages

Award-winning
Mortgage Advisers

Fast Decisions

National Coverage

Holistic Approach

Comprehensive Panel

Direct Access to Underwriters

No Obligation Quote

Did you know we also offer these services?

No Sale, No Fee, Fixed Price

Low Cost, National Coverage

Instant Online Quotes