Raise up to 75% loan to value with a holiday let mortgage. Holiday let mortgages have the potential to generate significant income for your business

Holiday Let Mortgages

Holiday let mortgages allow the borrower a first charge loan using an investment residential property as security.

A holiday let mortgage allows the holiday home to be rented out for short periods of time, usually up to 28 days per booking.

Serviced accommodation mortgages allow the property to be rented on a short-term rental for a maximum of 90 days.

Mortgage payments are covered by the rental income received from the holidaymaker.

How do holiday let mortgages work

Holiday let mortgages are typically up to 75% loan to value (LTV) of the open market value (OMV) of the property, although some lenders may allow up to 85% LTV.

Lenders will consider both holiday let properties that are Freehold or Leasehold.

Properties with a short leasehold remaining may be difficult to secure funding on.

As a long-term product, holiday let mortgages are highly competitive with a good choice of both fixed-rate and variable-rate terms

Holiday let ready reckoner

For a successful application for a holiday let mortgage, lenders will want the property to be in or close to popular tourist and holiday destinations

Properties that are not in or at the edge of popular tourist and holiday destinations may be ideally suited for serviced accommodation.

Serviced Accommodation Mortgages

Not every property will meet a lender’s criteria as a suitable holiday let. Wattsford Commercial Finance, our commercial finance brand has built an enviable reputation in providing serviced accommodation mortgages.

For more information on serviced accommodation mortgages