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Mortgage360 are here to help you make the right choice.

Here at Mortgage360 we pride ourselves on offering tailored advice, coupled with great service. We are mortgage experts, so you can rest assured that you are in safe hands when searching for your new mortgage, whatever your situation may be.

Key Benefits

We are committed to guiding you through one of life's most significant financial decisions.

When it comes to securing the right mortgage, our expert team is here to ensure that you make informed choices tailored to your unique needs.

At Mortgage360, we’ll help you access appropriate mortgage lenders and mortgage products.
Securing a mortgage for a holiday let can be challenging – we’ll advise and guide you through the process.
We’ll help you achieve your investment goals.

With the increase in staycations, the rise in Airbnb and the growing appeal of the UK holiday market, investors are being attracted to the holiday let market as a way of generating income from a property and also being able to use it themselves from time to time.

A property purchased for the purpose of holiday letting can generate significantly more income than a standard Assured Shorthold Tenancy (AST) on a buy to let.

Securing a mortgage on a holiday let isn’t as straightforward as a main residential property. At Mortgage360, we can guide you through all the different options, for accessing appropriate mortgage lenders and products.

What is a holiday let mortgage, and why do I need one?

A holiday let mortgage is a very specific mortgage product, offered by mortgage lenders to investors wanting to buy a property with the express intention of using it primarily as a holiday let for paying guests.

It’s a business, and a property bought using a holiday let mortgage cannot be used by longer-term tenants on an Assured Shorthold Tenancy agreement.

It is not the same as a second home mortgage, where you are buying a property for your sole use, or for the use of friends and family.

For the mortgage lender, the criteria here is how the property will be let, and what the income from these lets will be.

What qualifies as a holiday let?

Holiday lets are very different from a second home, and the parameters describing it are very specific. It is described as an FHL (Furnished Holiday Let).

The property must be available 6 months a year (known as the availability condition), and must be rented out as holiday accommodation for at least half that time (the letting condition).

If you and your family and friends are using the property, the time you spend there is excluded from this total.

It has to be located in the UK or the European Economic Area. It must be fully furnished, and it must be commercially let.

Other things govern qualification as a holiday let. The pattern of occupation condition states that “If the total of all lettings that exceed 31 continuous days is more than 155 days during the year, this condition is not met so your property will not be a FHL for that year.”

Benefits of working with a Specialist Mortgage Broker for Holiday Lets

Securing the right mortgage for a holiday let can be challenging, involving a more complex application process than a more conventional mortgage. A specialist holiday let mortgage broker will understand the market, have an in-depth knowledge of the current deals and valuable experience with the lending criteria of each mortgage provider.

It is likely that the lender will want to carry out more detailed checks on the property itself, alongside checking your personal circumstances.

A specialist holiday let mortgage broker will be able to guide you through the process and they will also be able to advise you on the most suitable deals and work with you to submit your mortgage application.

Types of Mortgages for Holiday Lettings

You cannot buy holiday lets using a normal mortgage. This is a very specific market; there are a limited number of specialist lenders and their requirements are very specific. If this is not your main property, you need to secure a specialist holiday let mortgage.

Typical mortgage products are structured similarly to main residential deals (options to fix or go variable), albeit with higher interest rates and fees. After the initial rate period has expired it will change to a standard variable rate after an agreed term as charged by the lender and your LTV (Loan to Value) ratio will also affect the rates which you are offered.

It is possible to secure a holiday let mortgage on an interest-only basis, or a mix of interest only and capital plus interest.  

Buy-to-let mortgages

It might seem that a holiday let mortgage is the same as a buy to let mortgage, as both are governed by the achievable rent on the property.

However, Buy to Let mortgages are designed for properties on Assured Shorthold Tenancies, and do not permit use of the property as a holiday let. If you use your property as a holiday let when you have a buy to let mortgage, you will be breaching the terms of your agreement. At the very least, your insurance will be void, and your lender could demand repayment in full of the entire mortgage.

Investment property mortgages

An investment property mortgage is just an umbrella term used to describe any mortgage secured on a property which is not for personal use and occupancy. You need to arrange a dedicated holiday let mortgage if seasonal holiday letting is the purpose of your purchase.

Holiday Let Mortgage Eligibility Criteria

Eligibility criteria for holiday let mortgages start with your intentions for the property. To qualify for a holiday let mortgage, the property must be available for at least 6 months a year, and you must let it for at least 105 days (15 weeks).

These must be short term rentals and must not exceed 31 days. Any single rental that does exceed the maximum allowable 31 days will not count towards your compulsory 105 days.

Most lenders will require:-

  • A significant deposit for a holiday let mortgage, usually more than 25%, although there are lenders who will consider less. Bigger deposits will usually result in better interest rates on your mortgage.
  • Applicants must be aged at least 21, and lenders will also have minimum income requirements. They may also require that you already own your own home.
  • As a guideline, lenders will expect you to be able to realise a minimum of 125-145% of the cost of your monthly mortgage repayments in holiday rental income. This is usually calculated using a ‘seasonal average’ which takes into account the low to high fluctuations over the year.
  • Personal usage of the property is usually restricted to 90 days per annum.
  • Some lenders will have limits on the number of holiday lets that you can own.

How much will a holiday let mortgage cost?

Be prepared for the fact that holiday let mortgages usually attract higher rates and fees than standard residential mortgages.

These can differ based on the actual size of the property, the location, the access and the overall condition. Mortgage lenders will be keener to lend on properties in popular areas where occupation levels over the year are likely to be higher and generate more stable rental income.

The deposit will usually be in the region of 25-30%, and mortgage interest rates are generally slightly higher than for standard buy to let mortgages.

You’ll need to pay stamp duty on your property, as well as complete a self assessment tax return and pay income tax on your rental income. You may also be liable for the additional 3% stamp duty land tax surcharge for owning more than one property in the UK.

How much deposit do I need for a holiday let mortgage?

You’ll need a bigger deposit, usually 25-30%, compared with a home buyer mortgage where typical deposit requirements range from 5-10%.

How can Mortgage360 help?

At Mortgage360, we work closely with our clients, researching and selecting suitable holiday let mortgage products to help them secure their holiday let properties. We have established relationships with to the top holiday let mortgage providers, which means we have the freedom to secure the deal that’s just right for you, whatever your personal circumstances. Call Mortgage360 for a no-obligation chat about your own circumstances.

Holiday Let Mortgage Broker

Here at Mortgage360, we can provide expert advice on all your mortgage and insurance needs.

Whether you’re ready to get started on your journey now, or you’d just like a no obligation consultation, we’d love to hear from you…

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There may be a fee for arranging a mortgage. The precise amount will depend upon your circumstances, however we estimate this to be between £200 and £600.


See what our clients are saying....

Zoe Cameron
September 28, 2023

Great service from Mortgage360, following a recommendation from my financial advisor. They efficiently went through our criteria and found the best mortgage to suit our needs. Their comms are great, they kept me fully informed throughout. Thank you Gavin and Matt.

Barnaby Fox
September 14, 2023

Gavin/the team was extremely efficient and communicative through the whole process, resulting in getting a mortgage at a great rate.

Richard Fryer
June 30, 2023

After working with Matt from Mortgage 360 previously on our first mortgage he shows excellent customer service and caters for the needs of the client. Couldn’t be happier working with Mortgage 360 especially in the current climate as the business answers all the questions asked and takes the customers best interests into account.

Samia Umarq
May 15, 2023

Gav arranged my mortgage he was great throughout the process keeping informed, very friendly and knowledgeable highly recommend him.

R Virk
R Virk
May 10, 2023

Excellent service from Gavin Watson

I contacted Gavin Watson, as I was needing to remortgage my property quickly, as my previous fixed arrangement was due to end within weeks. Therefore, there was a sense of urgency on my part. I need not have worried as Gavin was very supportive and professional from the first contact to the completion of the new mortgage arrangement. He took the time to listen and explain all the options I had and guidance on the best option for my particular circumstance. Gavin ensured the remortgage was completed effectively and efficiently, not to mention, well within the timescale. If you are looking for a professional, who has the best interests at heart for his clients, then look no further. I highly recommend Gavin Watson, if you are in the market for a mortgage. Thank you so much Gavin for such an excellent service.

Angela Holder
Angela Holder
May 6, 2023

Great service from Matt for the second…

Great service from Matt for the second time. He was fast to give advice and extremely efficient in obtaining the best possible mortgage. The whole process was smooth and stress free.

Aiden palmer
Aiden palmer
May 4, 2023

Brilliant service!

Brilliant service!! Gavin has helped us so much to get our mortgage and we couldn’t have done it without him. We will definitely use him again in the future. Thankyou so much!

GALE Boyes
April 21, 2023

Absolutely amazing service from Matt can't thank him enough for securing our mortgage for our forever home considering our past credit history. Thankyou again Matt at pulsar. 100% recommend.

Jamie Chan
Jamie Chan
April 4, 2023

Matt continues to provide exceptional…

Matt continues to provide exceptional client services, and is very diligent in searching the market for the best deal. Highly recommended. Thanks, Jamie

Sue Alexander
Sue Alexander
March 16, 2023

I recommend Pulsar to everyone

I would recommend Pulsar to everyone. Gavin has been amazing helping me to buy my council house. As this is my first home purchase and I’m not young!! He made everything easy to understand and made the mortgage mind field easier to navigate, getting me the best deal. I know that ongoing support is there if and when I need it. Thank you Gavin x

David Ian
David Ian
March 3, 2023

Great service, friendly, prompt and professional personal recommendation led us to…

A personal recommendation led us to Pulsar F. S. Matthew Illingsworth was very helpful, prompt and supportive through the process of obtaining a bridging loan to purchase. The documentation explained our options and laid out the process clearly. Would full recommend to others.

Amanda Underhill
Amanda Underhill
February 27, 2023

Remortgage recommendation

Gavin has been absolutely amazing dealing with my remortgage. Professional but personable from the start, he has been able to secure the right mortgage for me and supported me through the process giving impartial advice and a range of options for me to consider. He’s provided timely support, and has been contactable to answer questions as needed - this has been exactly what I needed during a stressful time remortgaging during divorce negotiations. I’d highly recommend Pulsar Financial Services!

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