Mortgage guide
Mixed use Holiday let Mortgage
A mixed-use holiday let mortgage is designed for properties that combine holiday let accommodation with commercial elements, or where part of the property is used for a different purpose alongside short-term letting. These mortgages sit between standard holiday let and full commercial lending and are arranged through commercial buy-to-let lenders or commercial mortgage lenders.
Mixed use Holiday let Mortgage
Mixed-Use Holiday Let Mortgage
A mixed-use holiday let mortgage is designed for properties that combine holiday let accommodation with commercial elements, or where part of the property is used for a different purpose alongside short-term letting. These mortgages sit between standard holiday let and full commercial lending and are arranged through commercial buy-to-let lenders or commercial mortgage lenders.
Loan-to-Value (LTV)
Mixed-use holiday let mortgages are typically available at up to 75% loan-to-value (LTV). This reflects the additional complexity and risk associated with mixed-use assets compared to single-use residential properties.
Experience and Borrower Criteria
Lenders are generally pragmatic in this space:
- No prior experience is required where the property comprises fewer than four holiday let units
- First-time buyers (FTBs) may be accepted on larger schemes, provided they can demonstrate a minimum personal income of £50,000
Applications are assessed on the overall strength of the property and income profile, rather than experience alone.
Suitable Property Types
Mixed-use holiday let mortgages are suitable for a wide range of scenarios, including:
- A holiday let flat above a commercial unit (shop, café, or office)
- Properties with integrated commercial elements
- Small mixed-use holiday let schemes
These property types typically fall outside standard buy-to-let or residential holiday let criteria.
Lending Route
Finance is arranged through:
- Commercial buy-to-let mortgage lenders, or
- Commercial mortgage lenders
Valuations and underwriting will reflect both the residential holiday let income and the commercial component.
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
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 makes a holiday let "restricted"?
A holiday let is restricted where planning conditions, a lease, or title covenants limit it to holiday use only, prevent permanent residence, impose seasonal occupancy limits, or tie its use to a holiday park, lodge site, or managed scheme.
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.
What is the minimum deposit for a holiday let mortgage?
The minimum deposit for a holiday let mortgage is usually 20%, available with a limited number of specialist lenders. Most holiday let mortgages require a 25% deposit, which provides wider lender choice and better pricing, while more complex or restricted properties may require higher deposits.
Do I need experience to get a restricted occupancy holiday let mortgage?
Prior experience is not always required. New investors can qualify, though they may need to meet specific income and affordability criteria.
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