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Holiday Let Mortgages

Looking to invest in a short-term rental property or second home? Holiday let mortgages are specifically designed for properties that will be rented out on a short-term basis, such as through Airbnb or seasonal bookings. Whether you’re starting fresh or expanding your portfolio, WIS Mortgages can help you find the holiday let mortgages with the best rates.

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Key Benefits

Maximise Income Potential:
Earn more through short-term lets, especially in popular tourist areas.
Personal Use Allowed:
Many lenders allow owners to stay in the property part-time.
Flexible Criteria:
Some lenders accept projected rental income from letting agents.
Tax Benefits:
Furnished holiday lets may qualify for specific tax reliefs.

How Holiday Let Mortgages Are Assessed

Holiday let mortgages are assessed differently to both standard residential and standard buy-to-let mortgages, because lenders need to account for seasonal income fluctuations rather than a stable year-round rent. Most lenders base affordability on projected rental income, often provided by a local letting agent, and typically apply a rental coverage requirement similar in principle to standard buy-to-let, but built around peak and off-peak occupancy assumptions rather than a flat monthly figure.

Holiday Let vs Buy-to-Let: Why the Distinction Matters

Lenders draw a clear line between a holiday let, which is let out on a short-term basis to different guests throughout the year, and a standard buy-to-let, which is let to the same tenant on an assured shorthold tenancy. Using a standard buy-to-let mortgage for a property actually operated as a holiday let can breach the mortgage terms, since insurers and lenders price the risk differently for short-term letting. Confirming which category your intended use falls into before applying avoids complications later.

Furnished Holiday Let Tax Status

Properties that qualify as a Furnished Holiday Let (FHL) can benefit from specific tax treatments not available to standard buy-to-let, provided the property meets occupancy tests around availability and actual letting days set by HMRC. These rules can change, and qualifying can affect how mortgage interest and other costs are treated for tax purposes, so it’s worth discussing FHL status with an accountant alongside your mortgage broker rather than assuming a property automatically qualifies.

Personal Use of a Holiday Let Property

Many holiday let lenders allow the owner to personally use the property for a set number of days each year, commonly somewhere between 60 and 90 days, without it affecting the mortgage. The exact allowance varies by lender, and using the property beyond the agreed threshold, or in a way not disclosed at application, can create complications with both the lender and your insurer. Being upfront about your intended personal use at application stage avoids issues later.

Deposit Requirements for Holiday Let Mortgages

Holiday let mortgages typically require a deposit in the region of 25% to 35% of the property value, broadly in line with or slightly higher than standard buy-to-let. The exact requirement depends on the lender, the property’s location, and its projected seasonal income — properties in strong tourist areas with well-supported rental projections can sometimes access more favourable terms.

Converting an Existing Property Into a Holiday Let

If you already own a residential or standard buy-to-let property and want to switch it into a holiday let, you’ll typically need to remortgage onto a dedicated holiday let product, since standard mortgages don’t usually permit short-term letting use. Depending on the property’s location, planning permission or a change of use may also be required — worth checking with your local council alongside arranging the mortgage itself.

Holiday Let Mortgages Through a Limited Company

Some holiday let investors choose to purchase through a limited company structure, similar to standard buy-to-let, particularly where they hold multiple properties or want to separate personal and business finances. The pool of lenders offering limited company holiday let products is more limited than for standard buy-to-let, so confirming lender appetite for this structure early is worthwhile before committing to it.

Other Investment Options to Consider

If a standard tenancy suits your plans better than short-term letting, our Buy-to-Let Mortgages guide covers that route. If you’re weighing up multi-tenant lettings instead, see our HMO Mortgages page for how those are assessed.

Why Speak to a Specialist Broker

Holiday let lending is a specialist niche with a smaller pool of active lenders than standard buy-to-let, and criteria around seasonal income, personal use allowances, and FHL tax status vary considerably between them. A broker experienced in holiday let cases can present projected income clearly, identify lenders genuinely comfortable with your specific location and intended use, and help you avoid products that don’t fit how you actually plan to use the property.

Eligibility

Eligibility Criteria and Requirements.

Who Can Apply?

 
You may be eligible if you:

  • Are purchasing or remortgaging a UK-based holiday home
  • Intend to let the property on a short-term basis
  • Have a minimum 25% deposit
  • Can show projected or historic holiday rental income
  • Meet standard credit and affordability checks

What are the Requirements?

 

  • Property details including location and usage
  • Proof of deposit (typically 25–30%)
  • Projected or actual rental income (e.g. from a letting agent)
  • Proof of income (payslips or self-employed accounts)
  • Photo ID and proof of address
  • Bank statements (typically 3–6 months)
Please note: Meeting these criteria does not guarantee mortgage approval. All applications are subject to underwriting and affordability checks by the lender.

The Challenges

  1. Confusion between holiday let and buy-to-let mortgages by some lenders
  2. Lender concerns about seasonal income fluctuations and occupancy rates
  3. Tighter affordability checks, often requiring projected holiday rental income evidence
  4. Need to comply with regulatory rules on short-term letting

How we help you

  1. We source from lenders who specialise in holiday let mortgages and understand the sector-specific income models.
  2. Our advisers guide you through presenting projected income, including Airbnb or holiday rental forecasts.
  3. We help you understand the differences between personal use and commercial letting from a mortgage compliance perspective.
  4. We offer access to lenders offering bespoke holiday let products not typically found online.

How can we help

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Important Information And Regulatory Disclosure

Risk Warning
Your property may be repossessed if you do not keep up repayments on your mortgage.
FCA Authorisation
This service is provided by WIS Mortgages, which is authorised and regulated by the Financial Conduct Authority.
Fee & Commission Disclosure
We act as a mortgage intermediary and may receive commission from lenders. A fee may be payable for mortgage advice, which will be disclosed clearly in advance.
Adviser Disclosure
This content is for informational purposes and does not constitute personalised financial advice. Mortgage advice will be provided after assessing your individual circumstances.

Frequently Asked Questions

Find answers to some of the most common questions about mortgages, applications, and our services.

It’s a mortgage designed for properties rented out on a short-term or seasonal basis to holidaymakers, rather than long-term tenants.

Yes. Most holiday let lenders allow limited personal use, though usage terms may vary between providers.

 Lenders may use actual or projected rental income from a holiday letting agent or property management firm.

We search across specialist and high-street lenders to help you compare holiday let mortgages and secure the most suitable deal.

Yes. Many lenders accept Airbnb or short-term let income, especially with a proven track record or professional management.

In most cases, no but local regulations or leasehold restrictions might apply. Always check with your local authority and freeholder.

No. Holiday lets involve short-term tenancy, so you’ll need a specialist product designed for that use.

Rarely. Most lenders require you to own your main residence first, although a few exceptions exist.

Yes—but lenders may limit personal use to a specific number of weeks annually, so check the terms.

Not always, but some lenders may prefer you to use a professional management company, especially for affordability projections.

Last updated: July 2026

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