Holiday Let Mortgages
Holiday let mortgages assessed on projected annual furnished holiday let income - not a single tenancy agreement - from specialist lenders who understand short-term rental yields, seasonal income patterns, and FHL tax status.
Assessed on projected annual income, not a single tenancy
Standard BTL mortgages are assessed on a single AST tenancy income. Holiday let mortgages are assessed on projected annual income from a furnished holiday let - typically higher, but requiring specialist lenders who understand the FHL income methodology, HMRC's qualifying criteria for FHL tax status, and the seasonal occupancy patterns of short-term rental properties.
Every holiday let mortgage type placed
FHL Income Assessment
Projected annual income from a furnished holiday let is assessed by specialist valuers who understand short-term rental markets. The income figure used is typically higher than a single AST would produce for the same property.
HMRC FHL Qualifying Criteria
To qualify as a furnished holiday let for tax purposes, the property must be available for 210 days per year and actually let for 105 days. We advise on structuring the mortgage in line with FHL qualifying status.
Airbnb and Short-Term Rental
Properties operated via Airbnb, Sykes, or other short-term rental platforms are accepted by specialist holiday let lenders. Evidence of historic rental income or a professional letting agent's projected income schedule is the standard evidence base.
Coastal and Rural Locations
Holiday let lenders are experienced with the specific locations where short-term rental properties concentrate - coastal, rural, and tourist areas that some standard BTL lenders are less comfortable with.
Limited Company Holiday Let
Holiday let mortgages via limited company SPV are available from specialist lenders. The combination of FHL income, company structure, and property type requires a lender panel with specific experience across all three dimensions.
Holiday Let Remortgage
Existing holiday let properties can be remortgaged to release equity, switch to a better rate, or restructure from personal to limited company ownership. We manage the full remortgage process for holiday let properties.
How it works
Property and income details
Tell us the property location, projected or actual rental income, and ownership structure. We identify which specialist holiday let lenders are most appropriate for your specific property.
Income evidence and lender matching
A specialist RICS valuer provides a projected FHL income assessment or we use your letting agent's income schedule. We compare this against the ICR requirements of 130+ holiday let lenders.
Application and valuation
We manage the full mortgage application and the holiday let valuation - which considers both the capital value and the projected letting income of the property.
Mortgage offer and completion
Typical timeline: 4 to 6 weeks from full application to mortgage offer. Holiday let valuations can take slightly longer than standard BTL due to the income-assessment component.
Looking for a holiday let mortgage?
Compare 130+ specialist holiday let lenders - FHL income assessment, coastal and rural properties. Same working day response.
Frequently asked questions
How is holiday let rental income assessed?
On projected annual FHL income from a specialist letting agent or RICS valuer, rather than on a single tenancy agreement. This typically produces a higher income figure, supporting greater borrowing than a standard BTL assessment.
Can I use Airbnb income for a holiday let mortgage?
Yes. Specialist holiday let lenders accept Airbnb and other short-term rental platform income. Historic booking records and a professional letting agent's projected income schedule are the typical evidence base.
What LTV is available for holiday let mortgages?
Typically 70-75% LTV from specialist holiday let lenders. Some lenders will go to 80% LTV for well-established properties with strong rental income history.
Does the property need to meet HMRC FHL criteria?
Not necessarily for mortgage purposes - the lender's concern is rental income coverage, not FHL tax status. However, structuring the property to meet HMRC FHL criteria provides significant tax advantages that affect the overall investment return.
Can I get a holiday let mortgage through a limited company?
Yes. Specialist lenders accept holiday let mortgages in limited company SPV structures. The combination of FHL income assessment and company structure requires lenders with specific experience across both dimensions.