Mortgage guide
Buy to Let Mortgages Holiday Lets
Certain holiday let properties can be financed using buy-to-let (BTL) mortgage products, provided the property and its use meet lender criteria. This route can offer higher leverage and competitive pricing in the right circumstances.
- Published
- 13 Apr 2026
- Last reviewed
- 13 Apr 2026
- Reading time
- 2 min
Buy to Let Mortgages Holiday Lets
Buy-to-Let Mortgages for Holiday Lets
Certain holiday let properties can be financed using buy-to-let (BTL) mortgage products, provided the property and its use meet lender criteria. This route can offer higher leverage and competitive pricing in the right circumstances.
Loan-to-Value (LTV)
Buy-to-let mortgages used for holiday let purposes are available at up to 80% loan-to-value (LTV) with selected lenders. These products are available across a wide borrower base, including:
- Personal borrowers
- Limited companies (SPVs)
- UK expats
As with all holiday let lending, the highest LTV options are subject to tighter underwriting and strong income projections.
Occupancy Restrictions
Some buy-to-let lenders will accept properties with occupancy restrictions, provided those restrictions are holiday let-related only. Typical acceptable wording may restrict:
- Use to short-term holiday accommodation
- Occupation as a sole or main residence
Restrictions that go beyond holiday use or materially limit marketability may still require specialist holiday let or commercial lending.
Suitability and Underwriting
Buy-to-let holiday let mortgages are most suitable where:
- The property is residential in nature
- Planning use aligns with holiday letting
- There is clear leisure demand
- The restriction (if present) is limited to holiday use only
Affordability is still assessed using holiday let income projections rather than standard AST rental assumptions.
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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
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.
Who lends on high value buy to lets in prime London?
High-value buy-to-lets in prime London are financed by private banks, specialist buy-to-let lenders, and the large loan divisions of some mainstream banks. Prime London lending is shaped by lower rental yields, which can restrict loan size under interest coverage ratio (ICR) rules, so some lenders allow surplus personal income to support the application, known as top-slicing.
What is a holiday let mortgage?
A holiday let mortgage is a specialist mortgage for properties rented short term to holidaymakers. It differs from residential and buy-to-let mortgages by assessing affordability on projected holiday income, applying seasonal stress testing, typically requiring higher deposits, and allowing limited personal use only where lender criteria permit.
What is a holiday let mortgage with restricted occupancy?
A holiday let mortgage with restricted occupancy finances a property subject to conditions limiting how it can be used, often restricting occupancy to certain times of the year or to certain types of occupant.
What is the interest rate for a holiday let mortgage?
Holiday let mortgage interest rates typically start from around 4.75% at 75% loan-to-value for standard residential holiday lets, depending on lender, property type, and fees. Rates are usually slightly higher than buy-to-let mortgages due to specialist underwriting, while commercial holiday lets are priced at higher commercial mortgage rates.
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