Mortgage guide
Standard Holiday Let Mortgages Best Rates
For classic holiday let properties, those with no holiday-only occupancy restrictions and located in strong, established tourism areas, lenders offer the widest range of mortgage options and the most competitive pricing.
- Published
- 13 Apr 2026
- Last reviewed
- 13 Apr 2026
- Reading time
- 2 min
Standard Holiday Let Mortgages Best Rates
For classic holiday let properties, those with no holiday-only occupancy restrictions and located in strong, established tourism areas, lenders offer the widest range of mortgage options and the most competitive pricing.
These properties are typically standard residential dwellings that are let on a short-term basis to holidaymakers, without planning or legal restrictions limiting occupation.
Loan-to-Value and Rates
For classic holiday lets, mortgages are commonly available at up to 75% loan-to-value (LTV), which represents the most competitive tier of the market. At this level, borrowers benefit from:
- Lower interest rates
- Broader lender choice
- More flexible underwriting
While higher LTV options may exist in limited cases, 75% LTV remains the optimal balance of leverage and pricing.
Borrower Types Accepted
Classic holiday let mortgages at 75% LTV are widely available to:
- Personal borrowers
- Limited companies (SPVs)
- UK expats
Affordability is assessed in the same way across all borrower types, using professional holiday let income projections and standard stress testing.
Location Criteria
Strong location is critical. Lenders look for:
- Established leisure demand
- Consistent short-stay bookings from holidaymakers
- Year-round or seasonal tourism strength
Properties in well-known coastal, rural, and lifestyle destinations and select leisure-driven cities, typically meet these criteria.
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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 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.
Are interest rates higher on a restricted occupancy holiday let?
Yes. Interest rates on restricted occupancy holiday lets can be higher than standard buy-to-let rates, reflecting the variable income of holiday letting and the narrower lender market.
How to get the best mortgage rate?
To get the best mortgage rate in the UK, you need a low loan-to-value (LTV), strong affordability, and a clean credit profile, then compare the whole market. Rates improve significantly at key LTV bands, and many of the cheapest deals are only available through whole-of-market brokers, not directly from banks.
What is a standard variable rate?
A standard variable rate is the interest rate a lender sets at its own discretion for borrowers not on an introductory or fixed product, and the rate products typically revert to when their initial period ends. It tends to move when Bank Rate moves but is not bound to it. It usually carries no early repayment charge, and it can be higher than the lender's introductory rates.
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.
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