Mortgage guide

Holiday Let Mortgages Scotland

Scotland’s strong and diverse tourism market, from the Isle of Skye to St Andrews, continues to drive demand for well-structured holiday let finance. This sustained visitor appeal makes Scotland an attractive, but specialist, market for holiday let mortgages.

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Holiday Let Mortgages Scotland

Scotland’s strong and diverse tourism market, from the Isle of Skye to St Andrews, continues to drive demand for well-structured holiday let finance. This sustained visitor appeal makes Scotland an attractive, but specialist, market for holiday let mortgages. A buyer who already owns a home normally pays the 8% Additional Dwelling Supplement on a holiday let, covered on our mortgages in Scotland page.

We provide expert support with holiday let mortgages across Scotland, assisting property investors, second-home buyers, expats, retirees, and first-time holiday let operators. Our advice covers both residential holiday let mortgages and commercial lending solutions, ensuring the funding matches the property type, location, and intended use.

We regularly arrange finance for holiday lets across key Scottish markets, including Skye, St Andrews, Fife, Perth and Perthshire, Ballater, Arran, and Dunoon. This includes a wide range of property types, from traditional cottages and coastal homes to lodges, cabins, glamping sites, and more remote rural holiday lets.

Scotland also presents unique considerations around planning, licensing, and occupancy requirements, as well as differing lender appetite compared to England. We guide clients through these nuances, advising on deposits, affordability based on holiday let income, valuation methods, and the most appropriate lender route, whether mainstream, specialist, or commercial.

By operating on a whole-of-market basis, we are able to source competitive and compliant holiday let mortgage solutions throughout Scotland, ensuring the finance supports both the investment strategy and long-term operation of the property.

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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.

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 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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