Mortgage guide
Holiday Let Commercial Mortgages
Holiday let commercial mortgages are designed for larger or more complex hospitality-style assets that fall outside standard holiday let or buy-to-let criteria. These products are suitable for properties operating as genuine trading businesses or those with planning and occupancy restrictions that prevent residential lending.
- Published
- 13 Apr 2026
- Last reviewed
- 13 Apr 2026
- Reading time
- 2 min
Holiday Let Commercial Mortgages
Holiday Let Commercial Mortgage Options
Holiday let commercial mortgages are designed for larger or more complex hospitality-style assets that fall outside standard holiday let or buy-to-let criteria. These products are suitable for properties operating as genuine trading businesses or those with planning and occupancy restrictions that prevent residential lending.
Suitable Property Types
Holiday let commercial mortgages are commonly used for:
- Hotels and guest houses
- Apart-hotels, including former hotels converted into serviced holiday apartments
- Groups of cottages
- Smallholdings with holiday let use and occupancy restrictions
These property types are typically not acceptable to residential or buy-to-let lenders due to their scale, use class, or trading dependency.
Experience and Trading Requirements
Prior experience is not always required for holiday let commercial mortgages. Many lenders will consider first-time operators, provided the business model is sound and the property is suitable for the intended use.
However, valuation methodology depends heavily on the availability of trading information:
Where trading accounts are available, lenders may instruct an MV1 going concern valuation, reflecting the value of the property as an operating business.
Where accounts are not available, lending is typically assessed on a vacant possession basis with a 180-day valuation, reflecting a more conservative view of marketability.
Valuation and Lending Approach
Commercial lenders focus on:
- Business sustainability
- Location and demand
- Asset marketability
- Occupancy and planning restrictions
The valuation route directly influences achievable leverage and product availability.
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 |
Related case studies
Read more about Holiday Let Title SplitHoliday Let Title Split
Discover how we helped split the title of a holiday let to maximise investment returns. Read the full mortgage case study and our tailored approach.
Frequently asked questions
Is a holiday let classed as commercial?
A holiday let is not always classed as commercial. Single residential holiday lets are usually treated as residential investments. A holiday let is classed as commercial where it operates as a business, has commercial or C1 use, restrictive covenants, multiple units, or a scale that falls outside residential mortgage criteria.
What is a commercial mortgage?
A commercial mortgage is an asset-backed loan secured against commercial, semi-commercial or large-scale investment property. Lenders assess it on income sustainability and asset risk rather than personal income multiples, and pricing is set case by case, usually as a margin over Bank Rate.
What is commercial lending?
Commercial lending refers to loans secured against property used for business purposes, such as offices, retail units, or industrial premises. Terms, rates, and deposits are individually assessed and typically differ from residential mortgages.
What is a commercial bridge?
A commercial bridge is a short-term, property-backed loan used to purchase, refinance, or stabilise commercial or mixed-use property when a standard commercial mortgage is not immediately available. It is exit-driven, typically runs for 3-12 months, uses rolled-up interest, and is repaid through sale or refinance rather than ongoing affordability.
What is a semi-commercial mortgage?
A semi-commercial mortgage is a loan on a property that combines commercial and residential parts, such as a shop with a flat above, and is also called a mixed use mortgage. Lenders assess the combined rental income, the residential proportion and the commercial tenant's lease, or the business where the owner trades from the premises, and it is usually arranged with commercial or specialist lenders. A loan to an individual or trustees is a regulated mortgage contract where at least 40% of the property, measured by floor area, is lived in by the borrower or a related person; otherwise it is usually unregulated business lending.
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