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

As Featured
Awards from
Our customers have rated our service
Feefo logoIndependant User Feedback98%
Customer - Remortgage
Excellent swift service with truly professional agents. Advice given which made sense and worked!! Second time used and both experiences 5 star ...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.


What Our Customers Say

Customer - Remortgage
Would definitely recommend.. They were responsive and accurate with their information. Found us a personal deal that met our requirements. ...Read More
1 months, 14 days ago

Oludayo Sanya - Purchase
Peter always get the right mortgage. One of the best mortgage brokers around. Very quick and efficient ...Read More
1 months, 16 days ago

Peter Grainger - Purchase
I have been trying to get a mortgage for some time but at over 70 years of age all the other companies promised but failed to secure one for me. I tried Capital Fortune expecting the same outcome but they delivered ...Read More
2 months, 15 days ago

Nicholas Walter - Remortgage
Excellent in every regard with continued communication and updates at every turn ...Read More
2 months, 16 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.


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.


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.


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%FixedJul-20224.74%4.4%31-Jul-2022 £2000
The Mortgage Works Intermediary BTL 2 Year Fixed 2% Fee Cashback CCN1.24%FixedJul-20224.74%4.4%31-Jul-2022 £2000
Leeds BS BTL 2 Year Fixed £1999 Fee BLH1.29%FixedJul-20225.59%5.1%30-Jul-2022 £1999
BM Solutions Intermediary BTL 2 Year Fixed £1995 Fee Purchase CHY1.32%FixedSep-20224.44%4.8%30-Sep-2022 £1995
NatWest Intermediary BTL 2 Year Fixed £995 Fee Purchase CNW1.35%FixedSep-20224.09%4.4%30-Sep-2022 £995
Barclays Bank BTL 2 Year Fixed £1795 Fee BWO1.35%FixedJul-20224.59%4.8%31-Jul-2022 £1795
Santander UK Plc Intermediary BTL 2 Year Fixed £1499 Fee Porting CAN1.39%FixedSep-20223.35%3.8%02-Sep-2022 £1499
Santander UK Plc Intermediary BTL 2 Year Fixed £1499 Fee CAN1.39%FixedSep-20223.35%3.8%02-Sep-2022 £1499
Santander UK Plc Intermediary BTL 2 Year Fixed £1499 Fee (Scottish) CAN1.39%FixedSep-20223.35%3.8%02-Sep-2022 £1499
Post Office Intermediary BTL 2 Year Fixed £1995 Fee £500 Cashback (TOP SLICING ONLY) POS1.42%FixedAug-20224.59%4.1%31-Aug-2022 £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

Progressive BS 2 Year Discount No Fee Purchase BPG1.05%
then 4.35
DiscountRead More
Leek United BS RETENTION 2 Year Discount No Fee LEE1.1%
then 5.19
DiscountRead More
Progressive BS 2 Year Variable No Fee Purchase Foreign Currency Loan BPG1.34%
then 4.35
DiscountRead More

Best 5 Year Fixed Rates

HSBC Direct 2 Year Fixed £999 Fee Standard HSB1.14%
then 3.54
FixedRead More
Skipton BS 2 Year Fixed £995 Fee SBS1.15%
then 4.64
FixedRead More
Coventry BS 2 Year Fixed £999 Fee BCV1.18%
then 4.49
FixedRead More

Get Guaranteed Lowest Rate Mortgages

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