Holiday Let

House On Holiday Area Secured Funding

Thinking about a Holiday Let? 

With the growing trend towards holidays in the UK, this specialist type of finance can allow you to purchase an existing holiday let property or turn a normal residential property into a holiday let.


Lenders will base their loan as a maximum percentage of the value of the property and affordability of the loan based on forecast revenues.

If you think you have found a property then speak with a local holiday let agency for their written comments on the likely rent achievable on the property in the low, mid and high season.

Lenders will typically take 10 weeks of low-season income, 6 weeks of mid-season income and 10 weeks of high-season income, giving a blended 26 weeks income.

Most lenders will want to see historic accounts (say three years) if the property has already been used as a holiday let property and at least 12 months projections. Generally a basic profit and loss will suffice and you’ll need to consider agents fees for letting (typically 20% plus vat), online advertising fees, cleaning costs and general maintenance.

Couple Jumping In Joy due to Secured Funding

The property

When approaching the lender we’ll also need to know about the property you have in mind, ideally sales particulars with pictures and the online profile of the property if it is an existing holiday let.

As the loan progresses from an initial indication of appetite to a formal loan agreement a valuer will be employed to provide professional opinion on the property and the likely resale value, which for many properties would be reversion to a normal domestic use property.

Loans normally start at £100,000 with property values of £250,000 upwards.

Properties should be freehold or long leasehold of standard construction. If the property requires renovation or you have property assets rather than cash to contribute then you may need to consider alternative forms of finance as well as the Holiday Let Mortgage. We can help in constructing such a package of finance.

Final thoughts

One key point is that there are very few lenders that will provide this type of product if you are not already a homeowner – however it is possible, speak to us and we’ll be able to guide you on the latest position.

If you have something you’d like to talk through or progress get in touch here.

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