Mortgage guide
Holiday Let Mortgage Devon
Devon is a high-performing and lender-favoured holiday let market, driven by its dual coastlines, national parks, and strong year-round tourism appeal. With destinations spanning the North and South Devon coasts, alongside Dartmoor and Exmoor, the county attracts a broad mix of family, leisure, and short-break visitors throughout the year.
Holiday Let Mortgage Devon
Devon is a high-performing and lender-favoured holiday let market, driven by its dual coastlines, national parks, and strong year-round tourism appeal. With destinations spanning the North and South Devon coasts, alongside Dartmoor and Exmoor, the county attracts a broad mix of family, leisure, and short-break visitors throughout the year.
Popular locations such as Salcombe, Woolacombe, Croyde, Torquay, Dartmouth, and inland villages near the moors support consistent demand for short-stay accommodation. This sustained visitor flow underpins strong holiday let income projections, which lenders view positively when assessing affordability.
Holiday let mortgages in Devon are typically available at up to 75% LTV, where rates are most competitive, with up to 80% LTV available in stronger cases. Affordability is assessed primarily on projected holiday let income, rather than personal income, reflecting the proven earning potential of well-located Devon holiday lets.
Devon also features a high number of character and heritage properties, including cottages, barn conversions, and older coastal homes. While these can require careful handling from a valuation and construction perspective, specialist holiday let lenders are well accustomed to the local property profile.
Lenders active in the Devon market understand seasonal income patterns and apply underwriting that accommodates peak and off-peak trading periods. This ensures mortgage structures align with real operating performance, helping investors manage cash flow effectively.
Devon remains one of England’s strongest and most accessible regions for holiday let mortgages, offering a combination of high lender appetite, robust tourism demand, and flexible specialist lending options for investors.
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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 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 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.
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.
Can I convert a barn into a holiday let?
Barns can be converted into holiday lets with suitable consent, financed on completion by a holiday-let mortgage on projected letting income. Some Class Q and planning consents restrict use, which is checked first.
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