Whether you’re buying your first UK holiday let or are considering changing your existing property portfolio into holiday lets, our Holiday Let Mortgage has everything you need to make the most of your financial investment. And with borrowing available for properties all over England, Scotland and Wales and a range of flexible options for you to choose from, you can forget about tenants and think about guests. Stop renting by the month and let by the night. Move away from a house and into a holiday home. And turn your property into a business.

What is holiday let?

A holiday let loan is designed for landlords with properties they’d like to let out on a short-term basis as holiday accommodation. Holiday let mortgages are considered a specialist type of lending, so you won’t find one as easily as a standard mortgage. As with buy-to-let mortgages, holiday let is not currently regulated. With some holiday rentals making more in a single week than a traditional long-term rental does in a month, becoming a holiday let landlord could earn you a healthy income. Since mortgage interest relief was reduced on traditional buy-to-let properties, holiday let could also offer tax advantages that buy-to-let no longer can.

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Holiday let vs buy-to-let

Quite simply, a holiday let mortgage is for people who want a property they can rent out on a short-term basis, while buy-to-let mortgages are for those who want to rent over a longer term. 

The fact the property isn’t let out year-round like a buy-to-let property means affordability will be calculated differently to allow the lender to take into account the rise and fall of rental income depending on high or low season. 

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Benefits: at a glance

  • House and pound sign Slate icon

    Airbnb properties welcome

  • Single person Slate icon

    Stay in your property for up to 90 days

  • Two people Slate icon

    We lend on up to 3 holiday lets

  • Question mark in person's head Slate icon

    You don’t have to be a home owner

  • Money goes round Slate icon

    Hodge Early Repayment promise

Mature couple dancing in kitchen
Our Early Repayment Promise

The Hodge Early Repayment Promise gives you peace of mind, knowing if you need to sell your property and move out, you won’t be penalised by early repayment charges.

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Personal Criteria

To be eligible for a Holiday Let, you’ll need to meet some criteria:  

  • Age 21 – 88 
  • Applications can be made by one or two people, so it’s suitable for couples too
  • No minimum personal income 
  • You’ll need to show the property can yield a minimum rental income of 145% of interest payments at 5.5%. Your financial adviser will be able to help you work this out.

Property Criteria

  • Minimum property value of £120,000
  • Ex Public Sector: Houses minimum value £200,000; Flats and maisonettes minimum value £300,000
  • Properties with land up to 3 acres
  • Leasehold properties with a minimum 85-year lease
  • Flats and maisonettes with a minimum floor area of 35 square meters
  • Whole properties listed for rent on Airbnb with relevant insurances in place.
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Interested?

If you’re interested in our Holiday Let mortgage, you’ll need to speak to an IFA or a broker. If you don’t have one, you can find a broker using Unbiased.co.uk. 

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Your home may be repossessed if you do not keep up repayments on your mortgage.

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