Holiday Let Mortgage Allowing Personal Use

Personal Use of Holiday Let Properties

One of the key attractions of owning a holiday let is the ability to use the property personally, but the amount of personal occupation permitted while retaining a holiday let mortgage varies by lender and must be carefully managed.

Personal Use and Holiday Let Mortgages

Holiday let mortgage lenders allow personal use on the basis that the property’s primary purpose remains commercial letting. As a result, lenders set clear limits on how many days the owner may occupy the property each year without breaching mortgage terms.

Typical Lender Allowances

• Standard allowance: Many holiday let lenders permit up to 90 days of personal use per year. This is the most common threshold and provides flexibility to enjoy the property during quieter periods without affecting mortgage eligibility.
• More restrictive policies: Some lenders impose tighter controls on personal use and do not permit owner occupation at all. These restrictions are typically designed to maximise rental availability and reduce the risk of the property being treated as owner-occupied rather than a commercial holiday let.

Exceeding the permitted personal use can result in the property being reclassified as a second home or residential property, which may breach mortgage conditions and create tax and compliance issues.

Holiday Home Buy-to-Let Mortgages

These personal use allowances are particularly relevant to holiday home buy-to-let mortgages, where lenders specifically allow owner occupation alongside short-term letting. Many lenders in this space explicitly allow up to 90 days’ personal access per year, making them suitable for borrowers seeking both investment income and lifestyle use.

However, not all buy-to-let lenders permit personal occupation, so lender selection is critical.