Mortgage guide
Buy to Let Mortgage Holiday Home
A buy-to-let mortgage for a holiday home allows investors to purchase a property that is primarily let to holidaymakers, while retaining limited personal use. This type of lending sits between standard buy-to-let and specialist holiday let mortgages and is available with selected lenders.
- Published
- 13 Apr 2026
- Last reviewed
- 13 Apr 2026
- Reading time
- 2 min
Buy to Let Mortgage Holiday Home
A buy-to-let mortgage for a holiday home allows investors to purchase a property that is primarily let to holidaymakers, while retaining limited personal use. This type of lending sits between standard buy-to-let and specialist holiday let mortgages and is available with selected lenders.
Loan-to-Value (LTV)
Holiday home buy to let mortgage options are available at up to 80% loan-to-value (LTV) with certain lenders, although, as with most holiday let lending, the most competitive rates are generally available at lower leverage.
Higher LTV options are subject to stronger underwriting and robust holiday let income projections.
Personal Use Allowance
A key feature of these products is the ability to use the property personally for part of the year. Many lenders permit up to 90 days of personal occupation per year, provided:
- The property is not used as a main residence
- Letting remains the primary purpose
- Personal use does not conflict with any planning or occupancy conditions
This makes buy-to-let holiday home mortgages particularly attractive to investors seeking both income and lifestyle benefits.
Affordability and Criteria
Affordability is assessed using holiday let income projections, rather than standard AST rental assumptions. The property must still demonstrate strong leisure demand and suitability for short-term letting.
Not all buy-to-let lenders allow personal use, so careful product selection is essential.
Mortgage repayment calculator
Holiday let mortgage criteria
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Criteria | Detail |
|---|---|
| Max LTV | 80% |
| Minimum loan | None |
| Maximum applicants | None |
| Non-Homeowners | Acceptable |
| Occupancy restrictions | Acceptable |
| Below market value | Acceptable |
| Day one re-mortgage | Acceptable |
| Expats | Yes |
| Foreign nationals | Yes |
| Locations | England, Wales, Scotland and Northern Ireland |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Loan to Value (LTV): | Up to 75% |
| Interest Rate: | Fixed at 4.75% for 5 years |
| Product Fee: | £995 |
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Frequently asked questions
Can I remortgage to buy a holiday home?
Yes, you can remortgage to buy a holiday home, using the equity for the deposit and a second home or holiday let mortgage for the rest. A home for your own use is assessed on your income, with both mortgages counted, and is normally a regulated mortgage. One let to holidaymakers is assessed by specialist lenders on projected letting income, lenders limit how much you can use it yourself, and its mortgage is usually business lending outside the FCA's mortgage rules. Since the furnished holiday lettings tax regime ended in April 2025, a holiday let has been taxed like other residential lettings (GOV.UK: abolition of the furnished holiday lettings tax regime).
Can I buy a holiday home to live in permanently?
You can live permanently in a holiday home only if there are no holiday-only planning conditions or restrictive covenants and it is purchased with cash or funded by a residential or second-home mortgage. Properties financed with holiday let or buy-to-let mortgages cannot be occupied full time.
What is the difference between a buy-to-let and a holiday let mortgage?
A buy-to-let mortgage is for properties let long term under an Assured Shorthold Tenancy and is assessed on stable rental income. A holiday let mortgage is for short-term holiday accommodation, with affordability based on projected seasonal income, tighter stress testing, and limited personal use permitted under lender criteria.
Can I buy to let my home?
You can let out your home if your mortgage lender permits it. This may involve short-term consent to let or switching to a buy to let mortgage, depending on how long you intend to rent the property.
Does family buy to let affect how much I can borrow on my home?
Yes. Because the lender assesses family buy to let on your income, it counts in your own affordability and reduces how much you can borrow on your home now or in future. When you next remortgage or move, the family mortgage's payments are one of your commitments. For example, a £187,500 loan at an illustrative 5.2% over 30 years, not a product rate, costs £1,029.58 a month, and at 5 times income that takes £61,774 off what the same income would support on another mortgage. A business buy to let assessed on rent affects personal affordability less, but it is available only where the property is let to someone who is not a related person, not for a home your parents or child live in.
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