Why holiday lets need specialist finance
A holiday let earns variable, seasonal income from short stays rather than a steady monthly tenancy, so standard buy-to-let lenders often decline. The best holiday let mortgage comes from a lender that assesses seasonal income (low, mid and high-season averages) and understands short-term letting.
1. Specialist holiday let mortgages
A growing number of lenders — often building societies — offer dedicated holiday let products, assessing projected seasonal income. Best for furnished holiday lets run as a genuine business. Typically need 25–30% deposit.
2. Airbnb / short-term let mortgages
Some lenders specifically allow Airbnb-style letting. Best for owners using platforms for short stays — always check the mortgage permits short-term lets, as a standard BTL usually doesn't.
3. Holiday let mortgages for first-time holiday landlords
Some lenders accept those new to holiday letting, especially with other property experience or strong income. Best for owners entering the staycation market.
4. Mortgages for properties you also use yourself
If you'll use the property personally part of the year, some lenders allow limited personal use. Best for owners wanting a holiday home that also earns — confirm the permitted personal-use rules.
What lenders assess
- Seasonal income projections — usually low/mid/high-season averages from a letting agent
- Deposit — typically 25–30%
- Your income — many want a minimum personal income
- Permitted use — short-term letting and any personal use must be allowed
How to find the best holiday let mortgage
Holiday let lending is specialist, with the best deals from building societies not on comparison sites. A whole-of-market broker can match you to the right lender. Find a specialist through Nesto — free, no obligation.
Frequently asked questions
Can I get a mortgage for a holiday let?
Yes — specialist holiday let mortgages assess seasonal income. A standard buy-to-let usually doesn't permit short-term letting.
Can I use it for Airbnb?
Only with a mortgage that permits short-term letting. Check the terms — using a standard BTL for Airbnb can breach the mortgage.
How much deposit do I need?
Usually 25–30%, higher than standard residential mortgages.
Can I stay in the property myself?
Some lenders allow limited personal use; others don't. Confirm the permitted personal-use rules before buying.
How is holiday let income assessed?
Lenders use projected seasonal income — typically low, mid and high-season averages from a letting agent — rather than a single monthly rent.