Holiday let mortgages

A holiday let mortgage is not the same product as a buy-to-let mortgage. The rental income is seasonal, the tax rules are different, and the lender pool is significantly smaller.

Last checked 13 September 2026. Editor: Kris · editorial standards

Six sections. Each anchored to a first-party source, checked 13 September 2026.

1. Why you need a specific holiday let mortgage

Most buy-to-let mortgages prohibit short-term holiday lettings — the lender expects a long Assured Shorthold Tenancy, not nightly or weekly bookings through a platform. Using a buy-to-let mortgage for a holiday let without lender consent is a breach of the mortgage terms and can lead to the loan being called in. A holiday let mortgage is written for short-term occupation.

2. How lenders assess income

Lenders can't use a standard rental yield calculation because holiday lettings are seasonal. Instead they typically ask for: evidence of actual rental income over the last 12–24 months if the property is already letting; or projected income from a specialist letting agent for a new purchase. Lenders commonly require the projected income to cover the monthly interest payment at a stress rate by a margin of 125–145%. Because this income is lower in winter than summer, lenders may average across the year or focus on a minimum income scenario.

3. The Furnished Holiday Letting regime

A property that qualifies as a Furnished Holiday Letting (FHL) for tax purposes has historically received more favourable treatment than a standard buy-to-let, including capital allowances on furnishings and potential entrepreneurs' relief. To qualify as an FHL, the property must be available for letting for at least 210 days a year and actually let for at least 105 days (GOV.UK — Furnished holiday lettings). Take specialist tax advice before purchasing: the FHL regime has been subject to proposed abolition and the rules should be verified against the current year's Finance Act.

4. Deposit and loan-to-value

Holiday let lenders typically require a larger deposit than buy-to-let or residential lenders: 25–40% is common. The property must usually be in an established holiday letting area, and some lenders restrict lending to England, Wales, or specific postcode areas.

5. Stamp duty

A holiday let is an additional residential property. In England and Northern Ireland, the additional-property surcharge adds 5 percentage points to standard SDLT rates on purchases of £40,000 or more. The non-resident surcharge adds a further 2% if the buyer is not UK resident (GOV.UK — SDLT residential rates). Use the stamp duty calculator.

6. What to tell a broker

Give the broker: whether the property is already letting or a new purchase; 12–24 months of income history if available; the location; your personal income and other mortgage commitments; and whether you intend to use the property yourself and for how many weeks per year. A broker who knows the holiday let lender market can match you to the right product and explain whether a residential, buy-to-let or specialist holiday let mortgage is appropriate for the use you intend. At the first meeting they must confirm the range of lenders they access and any fee they charge (MCOB 4.4A.1R and 4.4A.8R).

Brokers whose website mentions buy-to-let

1024 firms in our directory mention buy-to-let on their own website. That's what they say about themselves, not an assessment by us, so check that a firm handles your situation and look it up on the FCA Register before taking advice.

Glasgow

Peterborough

Manchester

Clerkenwell

Leicester

Mayfair

Nottingham

Harrow

Leeds

Solihull

Birmingham

Derby

Southampton

Cardiff

Liverpool

Milton Keynes

Norwich

Coventry

Newcastle Upon Tyne

Poole

Preston

Strand

Bolton

Colchester

Sheffield

Bishopsgate

Doncaster

Edinburgh

Leigh-On-Sea

Northampton

Taunton

Bournemouth

Bradford

Brighton

Cheltenham

Chester

Chesterfield

Islington

Plymouth

Ringwood

Barnet

Basingstoke

Beckenham

Chippenham

Epsom

Fareham

Hemel Hempstead

Hitchin

Hornchurch

Hull

Leamington Spa

Luton

Maidstone

Salisbury

Stanmore

Stockton-On-Tees

Swansea

Teddington

Warrington

Waterlooville

Watford

Wirral

Wolverhampton

York

Ashford

Banbury

Belfast

Billericay

Brentford

Bury

Bury St. Edmunds

Caerphilly

Cambridge

Dudley

Eastbourne

Essex

Falkirk

Farnborough

Fenchurch Street

Gloucester

Halifax

Hayes

Hertford

Hinckley

Horsham

Huddersfield

Ilford

Ipswich

Lichfield

Lincoln

Lisburn

Lytham St. Annes

Maldon

Mansfield

Redditch

Rickmansworth

Romford

Scunthorpe

Shipley

Sittingbourne

Slough

Swindon

Uxbridge

Wakefield

Washington

Weston-Super-Mare

Weybridge

Wokingham

Worthing

Wrexham

Aldershot

Alton

Altrincham

Andover

Ascot

Aylesbury

Barking

Basildon

Bath

Bicester

Bishop'S Stortford

Blackpool

Bloomsbury

Brackley

Bracknell

Brixton

Brockenhurst

Bromley

Bromsgrove

Burnley

Cannock

Cheadle

Chepstow

Chingford

Corby

Crewe

Croydon

Derry

Dorchester

Dunfermline

Exeter

Folkestone

Gateshead

Glossop

Great Yarmouth

Hounslow

Keighley

Kilburn

Lowestoft

Lutterworth

Malvern

Neath

Newark

Newcastle

Newport

Newton Abbot

Newtownards

Nuneaton

Oldham

Paisley

Pinner

Potters Bar

Pudsey

Ripon

Rotherham

Sandbach

Shanklin

Shrewsbury

South Croydon

Southend-On-Sea

Southport

St. Albans

St. Helens

St. Neots

Stanford-Le-Hope

Stevenage

Stoke-On-Trent

Sunderland

Sutton

Sutton Coldfield

Tring

Walsall

Waltham Abbey

Walton-On-Thames

Wellingborough

Welwyn Garden City

West Brompton

West Midlands

Westminster

Whitechapel

Whitstable

Wigan

Winchester

More guides

General information, not advice. Mortgage Brokers List is a directory and a set of free tools. Only an FCA-authorised adviser can recommend a mortgage for your circumstances. See our editorial standards.