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Guide to Holiday-Let Mortgages


A short-term investment mortgage serves as a financial tool for property owners who opt to rent out their properties on a daily or weekly basis instead of the more common six to twelve-month tenure found in Assured Shorthold Tenancy agreements for buy-to-let (BTL) properties.

What is a holiday-let Mortgage?

Holiday-let mortgages typically focus on properties leased for shorter durations, located in high-demand rental areas such as popular UK holiday destinations. While most traditional residential properties are eligible, lenders often prioritise locations with a robust short-term rental market.

Can I achieve 100% finance on a holiday-let mortgage?

Acquiring 100% finance solely by leveraging one asset isn’t feasible. However, supplementing with additional security may facilitate achieving full financing.

Eligibility and Portfolio Requirements

Holiday let let mortgages cater to seasoned landlords owning at least one other BTL property. Additionally, meeting most lender criteria usually involves a declared income of £25,000 or more.

Loan to Value (LTV) Limits

The borrowing capacity on a holiday-let mortgage typically extends up to 75% Loan to Value (LTV).

Costs Associated with holiday-let Mortgages

The average interest rate for short-term mortgages hovers around 5.7% (up to 75% LTV) excluding any arrangement fees.

Process and Timeline

Transitioning to a holiday-let mortgage via a re-mortgage process takes approximately 8 to 9 weeks, while acquiring a new short-term mortgage on a property purchase extends the timeline to about 11 to 12 weeks.

Holiday-let investment mortgages offer flexibility for property owners seeking to capitalise on shorter rental periods, particularly in high-demand areas. Pilot Fish are experienced in helping investors source the right product for their investment goals. Check out our holiday-let case studies.

To explore your financing options, contact John or Michelle in our property team.

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