A message from Holiday Let Mortgage Brokers | Holiday lets share similarities with traditional rental properties, but they differ in one key area: tenancy length. Unlike standard buy-to-let properties that are typically rented out on long-term agreements, holiday lets operate on short-term stays, catering to holidaymakers and temporary guests. Because of this, lenders view them as higher risk, which means holiday let mortgages are more specialised and require tailored financial solutions.
It’s important to understand that a standard residential mortgage cannot be used for a holiday let property – even if you intend to use it for your own vacations. Most lenders will allow you to use the property personally for a limited period, typically at least 90 days per year. Exceeding this can invalidate the terms of your mortgage.
To qualify as a genuine holiday let in the eyes of mortgage lenders and HMRC, the property must meet specific criteria:
It must be available for holiday letting for at least 210 days per year.
It must actually be let out to paying guests for a minimum of 105 days annually.
Whether you’re passionate about UK staycations or seeking income through short-term rentals, we’ll support you every step. Securing a holiday let mortgage isn’t just about experience—it requires a tailored financial approach based on your objectives.
Success depends on market understanding, awareness of UK regulations, and access to lenders who know short-term rental criteria. Whether you advise first-time buyers entering the holiday let market or support landlords expanding portfolios, expert help is essential.
This niche requires knowledge of seasonal income, occupancy levels, and realistic property management expectations.
Why Holiday Let Mortgage Brokers Need Specialist Advice
The holiday let market operates under different rules than traditional buy-to-let or HMO lending. Regulatory requirements, occupancy expectations, and income projections vary, as do lender criteria.
As a dedicated Holiday Let Mortgage Broker, you must:
Understand seasonal income variability and how lenders assess it.
Know which lenders accept short-term lets, Airbnb-style operations, or part-time usage.
Advise on ownership structure—especially limited company vs. personal ownership—for tax planning and lending access.
Guide first-time holiday let buyers through licensing, planning consent, and insurance considerations.
The Rise of Holiday Letting: A Market Worth Watching
Did You Know?
Holiday lets in the UK have grown by over 14% year-on-year, with popular regions like Cornwall, Cumbria, and Devon seeing significant demand spikes. In fact, more than 150,000 properties are now registered as furnished holiday lets (FHLs)—a sharp contrast to the stagnant growth in the traditional rental market.
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What Makes Holiday Let Mortgages Different?
Holiday let mortgages differ from standard buy-to-let products in several key ways that affect both eligibility and affordability.
Income Potential, Not Just Rental Agreements
Lenders assess projected income during peak, mid, and off-peak periods. Some accept letting agent projections; others require historical booking records.
Stress Testing and Rental Coverage
Expect coverage ratios of 125% to 145%. Many lenders use average seasonal occupancy instead of assuming full-month rentals.
Location-Specific Lending Criteria
Holiday homes in tourist areas or approved holiday zones often receive better valuations. Some lenders avoid areas with Article 4 restrictions or local bans on second homes.
First-Time Holiday Let Landlords
Clients with no prior letting experience may have fewer lender options. A strong personal income or using a holiday let management service can help secure approval.
Standard Holiday Let Mortgages
Ideal for part-time landlords or those converting second homes. Flexible on personal use (usually up to 90–120 days per year) and great for lifestyle investors.
Professional Holiday Let Mortgages
For portfolio landlords running multiple lets across UK hotspots, these products may include business-level stress testing and enhanced income recognition, including platform-based income (e.g., Airbnb, Sykes).
Limited Company Holiday Let Mortgages
Now widely accepted by select lenders—great for long-term tax efficiency. Our experts help structure SPVs (Special Purpose Vehicles) and manage director guarantees and underwriting.
Refinance and Equity Release
Clients can refinance to raise funds for renovations or new purchases. Some lenders offer cash-out remortgages based on projected holiday income.
💡 Did You Know?
Properties qualifying as Furnished Holiday Lets (FHLs) can access capital gains tax reliefs, claim capital allowances, and offset mortgage interest—unlike traditional buy-to-let setups post-Section 24 reforms.
What Holiday Let Mortgage Brokers Should Know About Lender Criteria
Full Property Review
Some lenders thoroughly review a borrower’s portfolio—including income from other lets or employment.
Experience Matters—but Not Always
While many lenders prefer at least 1–2 years’ letting experience, others focus on income strength, credit history, and using a holiday let management company.
LTV and Income Thresholds
Max LTV typically ranges from 60% to 75%
Minimum earned income: often £20,000–£25,000 per annum
Accepted income from bookings: 30–45 weeks of occupancy per year
Market Insight for 2025
Average gross yields on UK holiday lets were 9.2% in 2024
Popular UK destinations reported booking increases of 18–22% year-on-year
Lenders offering bespoke packages for holiday lets rose by 25%
First-Time Holiday Let Buyers: Start Strong
We specialise in helping newcomers confidently step into the world of holiday letting. From understanding FHL tax breaks to choosing properties in high-demand areas, we offer:
Step-by-step mortgage guidance
Help choose between self-management vs. letting agents
Tips on occupancy optimisation and avoiding common pitfalls
Insights on yield potential in top-performing regions
Why Work With Us as Your Specialist Holiday Let Broker
You’re not just helping clients find a mortgage—you’re unlocking lifestyle investments and profitable income streams. Our team brings:
Access to 200+ specialist and mainstream lenders
In-depth market knowledge of holiday zones and rental platforms
Case management from application to completion
Help with planning, insurance, and holiday property compliance
💡 Did You Know?
Some lenders now offer rolling facilities for holiday let owners. These allow flexible equity withdrawal without full remortgaging, perfect for short-notice property purchases or renovations.
Ongoing Support for Your Clients’ Holiday Let Growth
Our team supports brokers and landlords alike with:
Pre-lender Reviews: We assess the property’s income potential and ownership structure before application.
Annual Portfolio Reviews: Spot refinance opportunities or restructuring needs early.
Regulatory Assistance: Help with local authority licensing, insurance, and planning checks.
Rate Watch & Early Remortgaging: Stay ahead of interest rate shifts and avoid SVR traps.
