Whereas standard BTL mortgages are for tenants on Assured Shorthold Tenancies, holiday lets rely on short-term rentals catering to the leisure and holiday market.
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One thing to consider when looking at an investment property as a landlord is that the purchase will attract a surcharge on the stamp duty rates of 5%. Stamp duty calculator: www.moneyhelper.org.uk
To qualify as a holiday let, HMRC requires that the property is available to rent 210 days per year and must be let out for at least 105 of these. Lenders will consider the property type, location and demand when calculating a likely sustainable income, year round, for determining borrowing levels.
Whilst the government has reduced most of the taxation benefits available to Holiday BTLs recently, there are still advantages of holding the property within a Limited Company. These are specialist products but we have several lenders who will lend on this basis.
Naturally a draw when owning a holiday property but bear in mind the time you will be able to stay in the property will be limited by the lender (normally 4-6 weeks in total per year).
As a growing part of the market, there are more and more lenders launching new products to facilitate the purchase of holiday lets. If you want to start the discussion as to how you might be able to join the holiday let movement yourself, click here.
LEGAL INFORMATION
Latitude Finance Ltd is an Appointed Representative of BrokerSync Ltd, which is authorised and regulated by the Financial Conduct Authority (1031981).
There may be a fee for Mortgage Advice. The precise amount will depend upon your circumstances and will be agreed upon following your initial meeting.
Equity Release, Investments, Pensions, Wills, Trusts, PMI and Estate Planning will be referred to our authorised third-party providers. Latitude Finance Ltd and BrokerSync Ltd are not responsible for any advice received from the third-party providers.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Conveyancing, Wills, and some forms of Buy-to-let Mortgages and Commercial Mortgages are not regulated by the Financial Conduct Authority.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured against it.
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is, therefore, primarily targeted at consumers based in the UK.
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