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.

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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.

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Illustration of capital-and-interest repayments only, assuming the rate stays the same throughout the term. Excludes fees, interest-only borrowing and lender affordability checks. The starting rate is an example, not a product quote. Your property may be repossessed if you do not keep up repayments.

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.

Holiday let mortgage criteria
CriteriaDetail
Max LTV80%
Minimum loanNone
Maximum applicantsNone
Non-HomeownersAcceptable
Occupancy restrictionsAcceptable
Below market valueAcceptable
Day one re-mortgageAcceptable
ExpatsYes
Foreign nationalsYes
LocationsEngland, 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.

Holiday Let Mortgages Rates November 2026

FeatureDetail
Loan to Value (LTV):Up to 75%
Interest Rate:Fixed at 4.75% for 5 years
Product Fee:£995
Some buy-to-let and commercial mortgages are not regulated by the Financial Conduct Authority.

About the author

Joseph Lane CeMAP is an expert holiday let mortgage broker

Founder, CEO

Calls and emails here go to Joseph personally, not to a general inbox.

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+44 7487 829005joe@mortgagelane.comMore about Joseph

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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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