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.

As featured

The Mail Online The Guardian
The Independent

Our customers have rated our service

Feefo logo

Awards from

Awards All
Awards All
Awards All
Awards All

Find out more


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.

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.


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.

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
Lender Initial Rate Type For Then APR* ERC* Fee
Virgin Money Intermediary Exclusive BTL 2 Year Fixed £1995 Fee Purchase BNR1.37%FixedSep-20204.99%4.7%01-Sep-2020 £1995
Post Office Intermediary BTL 2 Year Fixed £1295 Fee POS1.38%FixedSep-20204.99%4.5%30-Sep-2020 £1295
TSB Intermediary BTL 2 Year Fixed £1995 Fee Purchase TSB1.39%FixedAug-20204.84%4.4%31-Aug-2020 £1995
Hinckley & Rugby BS TBMC BTL 2 Year Discount £2999 Fee BHI1.4%Discount2 years 5.89%5.6% £3249
Leeds BS Portfolio BTL 2 Year Fixed £2499 Fee BLH1.44%FixedAug-20205.99%5.1%31-Aug-2020 £2499
Virgin Money BTL 2 Year Fixed £1995 Fee BNR1.44%FixedSep-20204.99%4.7%01-Sep-2020 £1995
Leeds BS BTL 2 Year Fixed £2499 Fee BLH1.44%FixedAug-20205.99%5.1%31-Aug-2020 £2499
The Mortgage Works Intermediary BTL 2 Year Tracker £1995 Fee Further Advance CCN1.49%TrackerJul-20204.49%4.1%31-Jul-2020 £1995
Platform Intermediary BTL 2 Year Tracker £1999 Fee Capital Raising CTS1.49%Tracker2 years 5%4.7%2 years £1999
The Mortgage Works Intermediary BTL 2 Year Fixed £1995 Fee CCN1.49%FixedJul-20204.49%4.1%31-Jul-2020 £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.
Instant Decisions with No Credit Scoring

In assessing your requirements, we do not use credit scoring and we can provide an accurate estimate of the amount of borrowing and the viability of your requirements, without effecting your credit score.

We avoid credit searches at the initial stages given that numerous credit searches will impact your ability to access cheap credit. It is clear that too many credit applications in a short period of time will impact your score and whilst it is important to shop around, formal applications for a mortgage can trigger rejections, as it gives the impression you may be desperate for credit. It is essential when making enquiries for any financial product, that the Company does not credit score you, until such time as you have agreed to make a formal application.

We can indicate your chances of approval prior to any application being made and where necessary, can obtain decisions in principle from lenders who do not use credit scoring.


How Much Can I Borrow?
About Capital Fortune
How Much Can I Borrow?
How Much Can I Borrow?
Stamp Duty Calculator
Mortgage Payment Calculator
Buy to Let Calculator
Send an Enquiry

Award-winning services

No obligation

Send an Enquiry