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Can I get a holiday let mortgage?

Yes, if there is demand for holiday lets in the area the property is in. You can apply for a holiday let mortgage (for traditional holiday lets or “AirBnB” style lettings) in personal name or via a limited company.

The rent must support the mortgage, and an average of the high, medium and low season rent will be used to assess if a holiday let mortgage is affordable to you.

Factors that may impact you getting a holiday let mortgage

  • Some types of poor credit
  • Not having enough money for a deposit
  • The value of the property being less than you expected

If you have questions, chat to our advisors on live chat, via the phone, or get a call-back we're here to help.

Today's holiday let mortgage rates

You can use our holiday let mortgage calculator to compare today’s latest mortgage rates.

Eligibility for a holiday let mortgage

  • First time buyers to experienced landlords
  • You must be over 18 years old
  • Minimum deposit 20% of the property value
  • Upper age limits at application are flexible
  • Low personal incomes are accepted
  • Property, pension and employment income is OK
  • Ready to get started?

    Request a call-back from our expert advisors

What is a holiday let mortgage?

Holiday lets are a great alternative to standard buy to lets. The demand for holiday lets (whether that is a traditional self-catering holiday cottage, or an AirBnB short-term letting) has been growing steadily, proving to be a lucrative option for landlords. Furnished holiday lets carry some tax benefits as they are automatically categorized as a business.

Holiday let mortgages are for properties being let-out on a short-term basis or as holiday accommodation.

Unlike traditional buy to lets, which are rented out on a medium to long-term basis, holiday lets are generally let out short-term basis, for a few days or weeks (though no guest can stay more than 31 continuous days).

These are often let to holidaymakers, groups or individuals. Short-term lets serve people travelling for business, leisure or practical stays, who require temporary accommodation, which is already furnished and equipped with everything they might need. Lenders will also often allow the owner to occupy the property themselves for up to 90 days of the year.

If you are not sure what holiday let mortgage criteria is, please take a look at our “Eligibility for a holiday let mortgage” section just below and if you have any questions, let us know and we will happily assist you.

You will receive the highest quality service from our expert advisors, as we are a specialist holiday let mortgage broker. To discuss your holiday let mortgage, do not hesitate to get in contact with us via live chat or free call!

We work with a range of over 80 holiday let mortgage lenders, including:

Why choose Commercial Trust?

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Apply with ease by phone

It couldn't be easier to secure a holiday let mortgage with our expert advisors. Ask all your questions and arrange an application on the phone from your sofa.

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World class customer service

We'll find you a great deal and take all the admin work off your shoulders, so you can relax while we get your mortgage completed. All the while giving you progress updates.

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Lender decision in 2 hours

By contacting you by phone and email you can get help more quickly than in-person services. It's possible to get you a lender decision in principle in as little as two hours after our call.

We can help you with...

  • AirBnB and traditional holiday let mortgages
  • Properties in England, Scotland, Wales, N. Ireland
  • Switch from residential or buy to let mortgage
  • Self-occupancy allowed
  • Borrowing based on rental income from property
  • Borrow up to 80% loan to value (LTV)
  • No minimum income options
  • Lenders with no upper age limits
  • Cash back, free valuation and other incentives available
  • Flexible affordability calculations
  • Unlimited portfolio sizes
  • Remortgage to like for like loan, or to raise capital
  • Special Purpose Vehicle (SPV) holiday let accepted
  • Trading limited company holiday let accepted
  • First time holiday let landlords accepted
  • Repayment or interest-only mortgage payment options
White English cottage house with traditional wooden front door and garden

"Our client had no holiday let experience, but still got the mortgage they needed"

Holiday lets have risen in popularity and don't require holiday let or landlord experience. You can invest in personal name or through a limited company. Lee Cologne, holiday let specialist.

Read more
Lee Cologne

Costs involved with a holiday let mortgage

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  • Lenders may charge you for the valuation conducted on your property. They often also charge a product fee, sometimes this can be added to the mortgage.

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  • You will need a conveyancing solicitor who will charge fees. Read our guide to choosing a conveyancing solicitor.

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  • We charge a broker fee for our work. You pay in two parts. A booking fee, once we have found you a mortgage deal, at application. The majority of our fee is paid at completion of the mortgage.

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  • Every mortgage comes with monthly mortgage costs based on the mortgage interest rate the lender charges. These are paid on either an interest-only or capital repayment basis.

How to apply for a holiday let mortgage


Tell our advisors about the property you are investing in, your needs and circumstances. If you have credit concerns, chat to us about them, so we can put you with the right lender.


Your advisor will find the best possible deal from a search of thousands of products. They will get a lender decision in principle, this requires soft credit search (occasionally it is a hard credit search).


Your advisor will call to discuss the product they found for you. You will be presented with one mortgage that is the best match for all your needs and offers you the most cost effective option.


On your application, your advisor will submit your mortgage application. Your account manager then does all liaison and administrative work to complete the deal, whilst keeping you updated at every step.

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Frequently asked questions

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Holiday let deposits currently need to be at least 20% of the property value. This means the maximum LTV for a holiday let is 80%

Compared to traditional buy to lets, the loan to value (LTV) for a holiday let is often lower. Meaning that the owner will be required to put down a larger initial deposit. This is due to holiday lets being a higher risk to the lender, as there is a large turnover of people living in the property which can increase the likelihood of damage or non-payment.

At present, holiday let mortgage rates are typically higher than standard buy to let rates, which would make like for like borrowing more expensive. However, don’t assume that this puts a holiday let mortgage out of financial reach.

Rental income from holiday lets is typically significantly higher than from a standard buy to let.

Running a holiday let requires more regular maintenance, such as cleaning, laundering, as well as repairs for general wear and tear. The owner will also be responsible for covering all of the bills, regardless of whether the property is occupied or not.

While this can make them more expensive than traditional buy to let properties, the owner does have the benefit of being able to reside in the property themselves for some of the year.

While the costs of a holiday let may be higher, it is important to factor in that you will be charging rent on a nightly or weekly basis and as a result you are likely to achieve much higher rental income than standard buy to let.

e.g. Imagine you rent out a three-bedroom house as a standard buy to let, and say the rent was £800 per month. If the property were a holiday let in a prime holiday location, you might rent it out at a similar sum on a weekly basis. So it is important to look at the rental income in your research.

The mortgage you can get for a holiday let will be based on the rental income. Holiday let rental income is different to a standard buy to let mortgage, this is because holiday lets typically attract different rental amounts, according to the season.

Summer will generally attract peak prices.

As a result, mortgage lenders will look at an average of high, medium, and low season weekly income the property can security attract throughout the year and offer a loan amount, according to this and their maximum loan to value rules.

The maximum loan to value for a holiday let mortgage is currently 80%. So, you can borrow up to 80% of the property value and will need at least a 20% deposit.

Every lender has wider criteria - details about the property and applicant that affect whether they will lend, so it is important not to assume you can definitely borrow at 80% LTV. A mortgage broker can help you find this out.

Unfortunately, we cannot offer holiday let mortgages for holiday lodges.

Holiday lodges, timber lodges, caravans or mobile homes are, in essence, temporary structures that can be removed from their location.

Given the property could be transported away, any loan using the property as security, is at significant risk. This is why the lenders we work with will not accept temporary structures as the security for a holiday let - or other - mortgage.

If you have a residential mortgage, you would need to ask your mortgage provider if you have their consent to AirBnB your house, as it may break the terms and conditions of your mortgage.

Your lender may assess their decision differently depending on whether you are letting out a room or your entire property so be very clear with them what your plans are.

If you cannot AirBnB your home on your existing mortgage, you can get a mortgage specifically for this purpose. A specialist broker, like Commercial Trust, can help you find one.

Holiday let mortgages are not regulated by the FCA. A holiday let mortgage is a buy to let mortgage, designed for holiday or short-term let accommodation. Buy to let mortgages are generally not FCA regulated, because they are seen to be products taken out by businesses, not by consumers.

You may be able to get a holiday let mortgage as a first time buyer. If you are the only applicant on the mortgage and are a first time buyer, there are fewer options. However, you could also consider making a joint application with someone you trust, who has owned property before. This can widen your options.

No, a holiday let property does not require a commercial mortgage.

Holiday let properties can be financed with a buy to let mortgage, designed for short-term lettings. A commercial mortgage is for a property that a business or multiple businesses operate from.

Similarly, you can take out a holiday let mortgage through a limited company, This still does not require a commercial mortgage. The need for a commercial mortgage is not dictated by the type of applicant you are, it is dictated by the intended use of the building.

You can change a buy to let property into a holiday let, but if your property is mortgaged, you will need to switch from a standard buy to let mortgage to a holiday let mortgage.

It is not uncommon for landlords to change their investment strategy and choose to rent a former long-term let on a short-term holiday let basis.

However, the dynamic changes and so a different type of buy to let mortgage is required. It is straightforward to make the change - just like any remortgage process.

Be aware that if you are within the deal period of your existing mortgage, you may be subject to early repayment charges, so it may be better to wait until your current mortgage is ERC free. Ask our advisors about this and they will happily guide you through.

No, council tax is not payable on an HMRC classified furnished holiday let property. You will instead be subject to business rates.

No, it is not particularly hard to get a holiday let mortgage. A specialist mortgage broker can help you find a suitable product from a wide choice.

Whilst holiday let mortgages are a more specialist type of borrowing, which means there are fewer lenders than for residential mortgages, there is still plenty of lenders offering them.

First time landlords can secure a holiday let mortgage, but if you own your own home this presents more lender options.

First time buyers have fewer lender options, but it still may be possible to get a holiday let mortgage.

Using a broker to help you find a deal suited to you can be helpful, because a specialist in these products will know how to go about appropriate due diligence to find you a competitive deal that suits your needs and circumstances.

There is a greater level of administration associated with holiday lets because, rather than tenants moving out infrequently, you have a turnover of tenants regularly. This can be outsourced, but you would need to factor the costs of that into your profit and loss.

Upfront costs are likely to be higher, as holiday lets must be fully furnished prior to renting. Expectation from holiday tenants is higher, in terms of facilities and amenities, because rather than spending day to day life in the property, a holiday is a special time that people look forward to so the property must meet that anticipation.

To stand out against other holiday lets, you are likely to have to invest in special extra touches and quality of décor and furnishings that would not be required of a standard, unfurnished let.

Wear and tear may be higher, because lots of different people will be using the property.

However, holiday lets are typically more profitable than standard buy to let properties, because the yields are usually higher as a result of charging rent by the day or week, rather than by 6 or 12 months. This can make holiday lets a very lucrative investment.

There are also tax implications which favour holiday lets, over standard buy to lets. A qualified tax professional can provide advice on this.