FAQs

Can I get a holiday let mortgage if I'm self employed?
Yes, and this is actually one of the more common combinations I deal with. Lenders will want to see your SA302s and tax year overviews, typically for the last two years. Some will accept one year's accounts for the right applicant. The key difference with holiday let is that the rental income assessment runs separately to your personal income assessment, so even if your earned income is complex, the property's projected rental income still carries weight in its own right.

How do lenders calculate affordability on a holiday let?
Rather than a single monthly rental figure, lenders use a blended projection across peak, shoulder and low season occupancy. Many require a formal projection from a recognised lettings agent. The lender then stress tests that income against the mortgage payment. Different lenders apply different stress rates and occupancy assumptions, which is one reason lender selection matters so much on these cases.

Do I need to already have a letting agent lined up?
Not always at application stage, but most lenders will want a rental projection from a credible local letting agent, even if you plan to manage the property yourself through Airbnb or similar. The projection gives them confidence the rental income is realistic for that location. A local Exmoor or North Devon agent will carry more weight than a national estimate tool.

Can I use a holiday let mortgage on a property I'll also use personally?
Yes, and this is one of the key differences from buy to let. Holiday let mortgages are specifically designed for properties that will be a mix of commercial letting and personal use. Lenders will set conditions on how many weeks per year you can occupy it personally, often no more than 90 days, but personal use is built into the product.

What if the property is unusual, a barn conversion, a shepherd's hut, a coastal cottage with non-standard construction?
This is where specialist lenders come into their own. Some of the most appealing holiday let properties, converted barns, stone cottages, off grid cabins, fall outside what mainstream lenders will accept for construction type, minimum value or property type. I work with lenders who understand rural and non-standard properties and can assess them on their actual merit rather than declining them on a tick box basis.

What deposit do I need?
Most holiday let lenders require a minimum of 25% deposit, with better rates typically available at 30% to 40% loan to value. Some specialist lenders will consider lower deposits in the right circumstances, but 25% is a realistic starting point for most applicants.

What's the difference between a holiday let mortgage and a buy to let mortgage?
Both involve lending on a property you won't live in, but they're assessed and priced differently. Buy to let lenders assess affordability on a single monthly rental figure from an assured periodic tenancy. Holiday let lenders use projected seasonal income instead. Buy to let lenders generally don't allow personal use. Holiday let lenders do. And the lender pools are largely different, most buy to let lenders don't offer holiday let products.

Can I remortgage a property I've been letting on Airbnb onto a proper holiday let mortgage?
Yes, and in many cases this is the right thing to do. If you've been letting a property on Airbnb using a standard residential or buy to let mortgage, you may be in breach of your mortgage terms. Moving onto a holiday let product puts you in the right place and often opens up better rate options as lenders in this space understand the income model. I'd always recommend doing this sooner rather than later.

What happens to my holiday let mortgage if I decide to stop letting it?
You'd need to speak to your lender. Most holiday let mortgages require the property to be actively available to let for a minimum number of weeks per year. If you want to move in permanently or convert it to a standard rental, your lender would likely require you to remortgage onto an appropriate product. I can help you navigate that transition when the time comes.

Is the FHL tax change a reason not to buy a holiday let?
Not necessarily, but it does change the numbers. The abolition of the FHL regime from April 2025 means you can no longer claim full mortgage interest relief or capital allowances. For higher rate taxpayers in particular, this increases the tax cost of ownership. Whether a holiday let still stacks up financially depends on your individual tax position, the property's earning potential and your long term goals. This is a conversation for your accountant. I can help with the mortgage piece.