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Buying a Holiday Home – Can I get a mortgage?

The simple answer is yes you can!

Whilst the number of lenders who offer such products is limited, there are some great options out there and the recent surge in the number of owners looking to move into holiday letting has meant that more financial products are being created for this market.

Holiday Let Mortgages are designed for properties which will be let out on a short-term basis as holiday accommodation. With the Holiday Let market forecast to grow 4% year on year renting a property on a short term holiday-basis can be a great way to get a solid return on property investment.

Benefits of Holiday Let Mortgages

Airbnb properties are welcome
You can stay in your property for up to 90 days a year
You don’t have to be own another property
You can have a number of individual holiday let mortgages and possibly organise a single holiday let mortgage if you have multiple properties on one title.

Criteria to bear in mind

You can access a mortgage from age 21 to 95 years
You can borrow up to 75% LTV on your property
You can re-mortgage from Day 1
No minimum personal income requirement


What’s the difference between a holiday let mortgage and a buy to let mortgage?

A Holiday Let Mortgage allows clients to purchase a property they can rent out to people on a short-term basis for holidays. It differs from a buy to let mortgage that expects rentals to be more long-term. This means that a client who needs a mortgage for a holiday home is more likely to meet the lending criteria for a holiday let mortgage compared to a buy to let mortgage that assumes the property is rented out for six to 12 months at a time.

How much can you borrow?

Up to 75% Loan To Value (LTV) oftentimes with loans customarily from £50,000 to £1.5 million. Usually the actual amount a Lender will lend is determined by your ability to afford the loan based on your expected holiday let rental income. You will likely need to show that the property can yield a minimum rental income and a Lender will usually take an average income over high, medium and low seasons.

We are happy to provide valuation letters for mortgage applications.To find out how much your holiday home can earn you. Contact us for a free appraisal on 01983 525710

Information provided by Prospect mortgage services Ltd

Prospect Mortgage Services Ltd are authorised and regulated by the Financial Conduct Authority FRN number: 647962. Registered Office Address: The Old Piggery, Cheeks Farm, Merstone Lane, Merstone, Isle of Wight  PO30 3DE. Prospect Mortgage Services is not responsible for, nor does the Financial Conduct Authority regulate, advice given with regard to taxation matters. Your home may be repossessed if you cannot keep up the repayments on any mortgage or other loan secured upon it.