Mortgage guide
Commercial Holiday Let Mortgage
By operating on a whole-of-market basis, including specialist commercial lenders and private banks, we are able to source suitable funding even where properties fall outside mainstream criteria. Our role is to ensure the mortgage is compliant, sustainable, and aligned with the way the business will operate, both at purchase and long term.
- Published
- 4 Aug 2026
- Last reviewed
- 4 Aug 2026
- Reading time
- 2 min
Commercial Holiday Let Mortgage
We assist borrowers with commercial holiday let mortgages where a property operates as a trading holiday accommodation business and does not meet standard residential or buy-to-let lending criteria. This includes hotels, guest houses, B&Bs, apart-hotels, cottage complexes, smallholdings with holiday use, and properties subject to holiday-only occupancy restrictions or non-residential use classes. We advise on the correct lending route from the outset, identifying when a commercial mortgage is required and avoiding unsuitable residential applications. Our experience covers properties with C1 or similar use, mixed-use assets, multi-unit schemes, and trading holiday let businesses.
We assist with structuring cases at up to 75% loan-to-value, advising on deposit requirements, product selection, and lender appetite. Where trading accounts are available, we work with lenders who will consider MV1 going concern valuations. Where accounts are not available, we place cases on a vacant possession or 180-day valuation basis, depending on the lender and asset type.
We also support borrowers where experience is limited or absent, including first-time buyers. For more complex or commercial holiday let purchases, we advise on minimum income expectations, often around £50,000 for first-time buyers and ensure the application is structured to meet lender risk requirements.
By operating on a whole-of-market basis, including specialist commercial lenders and private banks, we are able to source suitable funding even where properties fall outside mainstream criteria. Our role is to ensure the mortgage is compliant, sustainable, and aligned with the way the business will operate, both at purchase and long term.
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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