Holiday Let Mortgages

Holiday let mortgages are a flexible way for your clients to invest in the holiday home market. Find out all you need to know about our holiday let mortgages.

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Introducing Holiday Let Mortgages

Holiday let mortgages are designed for properties which will be let out on a short-term basis as holiday accommodation.

Hodge Holiday Let Mortgages give your clients a flexible way to invest in an increasingly attractive market.

With staycations on the rise and economic uncertainty making traditional buy-to-let a less attractive option, short-term holiday lets could be a great way to get a solid return on property investment.

Rather than worrying about tenants, your clients can start thinking about weekend guests and earning super host status.

The holiday let market is forecast to grow 4% year-on-year, so your clients could make a holiday home work for them. Of course, this is a specialist market requiring plenty of flexibility when it comes to finding the right mortgage, but luckily, the Hodge Holiday Let mortgage provides that flexibility.

The Early Repayment Promise is available to customers with a 50+, RIO or Holiday Let mortgage who want to sell their property during the term of the mortgage and redeem the loan in full, it offers added flexibility and peace of mind. Click here to find out more.

Benefits for your clients

  • Airbnb properties are welcome
  • They can stay in the property for up to 90 days
  • The option of interest only or repayment.
  • We lend on up to 3 holiday-lets
  • They don’t have to be owner occupier
  • The Hodge Early Repayment Promise – early repayment charge waived when selling.

To find out more, please download our product summary.


Product Option2 Year Fixed Rate
Interest rate (75% LTV)7.00% (£995 fee)
7.25% (Fee fee)
Loan to Value (LTV)75% up to £1.5m
Valuation FeesFree up to £1 milion property
Minimum Loan£50,000
Maximum Loan£1.5 million
Minimum Property Value£100,000
Maximum Property Value£10 million
Early Repayment Charges (ERCs)Fixed
Year 1 = 3%
Year 2 = 3%


  • Lending is available for those aged between 21 and 95

  • Up to £1.5 million at 75% LTV

  • Day 1 re-mortgages

  • No minimum personal income requirement

  • Maximum portfolio size at completion is 10 mortgaged rental properties, irrespective of lender

  • Available for holiday properties in England, Scotland and Wales (some restrictions apply in London and Edinburgh, please contact us for further details).

Client lending criteria: 

To be eligible, your client will need to meet the minimum holiday let mortgage criteria at the time they make the application: 

  • Minimum borrowing age – 21  
  • Maximum borrowing age – 88  
  • Maximum client age – 96 

Applications can be made by one or two people, so it’s suitable for couples too.  

Interest cover ratio 

There are no minimum personal income requirements for holiday let mortgages, but your client will need to show the property can yield a minimum rental income of 145% of interest payments at either:

  • 2 year fixed – the higher of pay rate + 2% or 5.5% *

  • 5 year fixed – pay rate

We take an average of 30 weeks rental income using an average of the weekly high season, medium season and low season rental income figures they provide on the application form.

*For £4£ Remo a reduced stress of pay rate + 1% is used.

Click here for our rental calculator.

If the property has previously been let out, we’ll also verify the rent by comparing the previous 12 months actual rental income with those from a local agent or holiday letting website.

  • Minimum property value of £100,000.
  • Ex Public Sector: Houses minimum value £150,000; Flats and maisonettes minimum value £250,000
  • Properties with land up to 3 acres.
  • Leasehold properties with a minimum 85-year lease, we’ll also lend to clients who wish to use the funds to extend the lease to a suitable term on completion.
  • Flats and maisonettes with a minimum floor area of 35 square meters.
  • Properties above or adjoining commercial premises can be considered as long as there is no adverse effect on the property. (Classes A3, A4 & A5 /Class 3 in Scotland are unacceptable uses).
  • Whole properties listed for rent on Airbnb with relevant insurances in place.

Holiday let mortgage FAQs

A holiday let mortgage allows clients to purchase a property they can rent out to people on a short-term basis for holidays. It differs from a buy to let mortgage that expects rentals to be more long-term.
This difference affects the way a lender calculates the affordability of a holiday let mortgage. With the holiday let mortgage the lender will take into account that the property isn’t always let out year-round and that rental income will fall and rise depending on whether it’s high or low season.
This means that a client who needs a mortgage for a holiday home is more likely to meet the lending criteria for a holiday let mortgage compared to a buy to let mortgage that assumes the property is rented out for six to 12 months at a time.

We can lend a maximum of 1.5million on loans up to 75% LTV.
The actual amount we lend is determined by your client’s ability to afford the loan based on their expected holiday let rental income.
Your client will need to show that the property can yield a minimum rental income of 145% of interest payments at the higher of either pay rate + 2% or 5.5% for a 2 year fixed, or pay rate if a 5 year is taken.
We take an average of 30 weeks rental income using an average of the weekly high season, medium season and low season rental income figures they provide on the application form

Yes, as long as the whole property is rented out and it meets all our eligibility requirements.

Yes, they can have up to three individual holiday let mortgages with Hodge.

Yes, your client can occupy the property for up to 90 days in any one year for personal use.

Yes, the loan can be repaid at any time, but an early repayment charge will apply. We waive this charge if the property is being sold.

Where your client has opted for a repayment Holiday Let mortgage, we will still calculate the loan on an interest only coverage basis. In the instance where there may be a shortfall, however, between the rental income being sufficient to cover the monthly payment of capital plus the interest, we may ask your client to verify how they will maintain the shortfall.

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