Holiday Let

Holiday let mortgages on UK property

Specialist mortgage finance for furnished holiday lets and short-term rental properties. Lenders that underwrite on holiday-let income rather than long-term AST rent, with top-slicing where personal income makes the deal work.

The product

How holiday let mortgages actually work

A holiday let mortgage is a buy-to-let-style facility designed for property let on short-term holiday bookings (Airbnb, Vrbo, Sykes, Boutique-Retreats, Premier Cottages, direct) rather than on a standard 12-month assured shorthold tenancy. The product fills a real gap. Standard BTL lenders typically prohibit short-term letting or cap holiday-let usage at 90 days a year. Owner-occupied second-home mortgages prohibit any letting at all. Specialist holiday-let lenders sit in the middle, underwriting on projected holiday income with full short-term letting permitted.

Lender appetite has grown sharply since 2020. Cumberland, Cambridge BS, Hodge, Family BS, Furness, Leek, Principality, Loughborough, Norton Home Loans, Suffolk BS and several specialist lenders now operate dedicated holiday-let products. Most cap at 75-80% LTV and run a stress test on projected holiday income (low, mid and high season) rather than on standard AST rent. Where the holiday income alone does not meet the lender's ICR, top-slicing - using surplus personal income to support affordability - is offered by a sub-group of lenders.

The other moving piece is tax. Properties meeting the HMRC Furnished Holiday Let (FHL) tests have historically been treated more favourably than standard rental property for capital allowances, mortgage interest relief and CGT. The FHL regime was abolished from April 2025, which has not changed lender appetite but has changed how a serviced-accommodation operator should structure the holding entity. We work with your accountant rather than around them.

Get a Quote Call 0204 6211776

Up to 80%

Maximum LTV

AirDNA

Used in valuations

Top-slicing

Personal income

Ltd Co or personal

Borrower structure

Why Doulton

What makes this work in practice

AirDNA and surveyor-projected holiday income

Lenders underwrite on a chartered surveyor's projection of low, mid and peak season weekly rates, often supported by AirDNA data for the postcode. The deal is built on the surveyor's number, so the right valuer matters.

Top-slicing on personal income

Where projected holiday income alone fails the stress test, a sub-group of lenders (Cumberland, Hodge, Cambridge BS and others) will top-slice using surplus PAYE or self-employed personal income to bridge the gap.

Ltd Co or personal borrower

Most holiday-let lenders accept both. Ltd Co rates are typically 0.2-0.4% above personal-name equivalents but the tax position post-FHL abolition is often more efficient inside a company - check with your accountant.

First-time landlords accepted

A first-time landlord buying their first holiday let is fine with several lenders. First-time buyer and first-time landlord on the same application narrows the pool but is still doable with the right specialist.

Existing AST property converted to holiday let

Conversion remortgages where an existing standard buy-to-let becomes a furnished holiday let are placeable with most holiday-let specialists, provided the property type and location are appropriate.

Coastal, rural, ski-resort and city-centre properties

Cornish cottages, Lake District barns, Scottish lodges, Welsh coastal homes, Cotswold stone cottages, central London apartments - all are lendable provided the surveyor will support a holiday-let income projection.

Portfolio holiday-let landlords

Landlords with 4+ holiday-let properties move into portfolio territory and unlock pricing from specialist commercial lenders (Shawbrook, Paragon, Foundation) rather than building society holiday-let products.

Holiday-let exit on a development

Where a barn conversion, garden cottage or new-build development has been built to be sold or operated as a furnished holiday let, we arrange the holiday-let mortgage as the development-finance exit.

The process

How it works

Property and income brief

We capture the property type, location, projected weekly bookings, any existing trading data (booking platform reports) and the personal income picture in a 20-minute call.

Lender shortlist with indicative terms

We benchmark the case across the 8-10 active holiday-let lenders, including pricing, fees, ICR, top-slicing tolerance and entity preference. You see the trade-offs in one comparison.

Application and surveyor management

Because the deal is built on a holiday-let income projection, instructing the right RICS surveyor is critical. We brief the surveyor and supply local rental data so the projection is robust.

Offer through to completion

We manage legals, KYC, source-of-deposit, lender conditions and the move from offer to drawdown.

Indicative terms on your holiday let mortgage

Tell us about the property, the projected weekly bookings and the borrower entity. We will benchmark across the active holiday-let lenders and come back with real indicative numbers, not a calculator estimate.

Get a Quote Call 0204 6211776

FAQs

Frequently asked questions

What types of UK mortgage can Doulton arrange?

Residential, buy-to-let, portfolio, limited-company BTL, HMO, commercial, semi-commercial, high-value, private bank, expat, interest-only, second-charge and specialist adverse-credit mortgages. We work across the whole of market.

How much can I borrow?

Residential borrowing is typically 4-5.5x income depending on the lender and profile. Buy-to-let lending is sized on rental income against stress-tested interest cover ratios. High-value lending and private bank cases are assessed holistically on wealth and serviceability.

What is the minimum deposit?

Residential mortgages typically need 5-15% deposit. Buy-to-let usually requires 20-25%. Specialist, high-value and expat ranges often require 25-40%. Larger deposits unlock better rates across every product.

Can I get a mortgage with complex income or adverse credit?

Yes. Self-employed, contractor, commission-based, bonus-reliant and multi-currency incomes all have specialist lender homes. Borrowers with recent defaults, CCJs, DMPs or historic bankruptcy can also be placed, with pricing reflecting the risk profile.

How long does a mortgage application take?

Straightforward residential applications reach offer in 2-4 weeks. Specialist, high-value and expat cases typically take 4-8 weeks. Conveyancing and exchange after that is driven by your solicitor's speed.

Related finance

Explore related pages

Other Doulton specialisms and lenders that commonly fit alongside this one. We always compare the full 130+ lender panel before recommending a deal.