Holiday Let Mortgages

Owning a holiday let property can be a rewarding investment, providing both rental income and personal enjoyment. However, financing a holiday let differs from standard buy-to-let mortgages, with lenders assessing affordability based on projected short term rental rather than long-term tenancy agreements.

At MSP Financial Solutions, we specialise in securing tailored mortgage solutions for holiday lets, ensuring you access the right lenders and competitive terms to maximise your investment potential.

Key Features of Holiday Let Mortgages

Holiday let mortgages operate differently from standard rental investments, with considerations including:

  • Income assessment – Lenders typically evaluate affordability based on expected short term rental income, factoring in seasonal fluctuations.

  • Personal use flexibility – Many holiday let mortgages allow owners to use the property themselves for part of the year, without affecting eligibility.

  • Higher deposit requirements – Typically, lenders require 25%-35% deposit, though this can vary depending on the property and location.

  • Specialist lenders – Very few mainstream banks offer holiday let mortgages, so working with a broker is key to accessing the best deals.

White two-story house with green trim and a green front door. Two windows on the upper floor with blinds, and two windows on the ground floor with window boxes filled with pink and red flowers and green foliage. The house has a paved sidewalk in front.

Who Can Apply for a Holiday Let Mortgage?

Holiday let mortgages are suitable for individuals looking to:

  • Purchase a property for short-term rental rather than full-time tenancy.

  • Generate income through platforms like Airbnb or traditional holiday home rentals.

  • Retain flexibility for personal use throughout the year.

Some lenders also require applicants to have previous landlord experience or a strong financial profile to qualify.

A quaint courtyard scene with a pink brick wall, white window shutters, a bicycle, a bush, a tangled blue string, and a white outdoor bench or storage box. There are potted plants and an olive tree to the right.

Key Considerations When Applying

Before securing a holiday let mortgage, you’ll need to assess:

  • Location and demand – Areas with strong tourism appeal typically generate higher rental income.

  • Mortgage structure – Fixed vs. variable rate options depend on investment strategy.

  • Regulatory requirements – Some locations have restrictions on holiday lets, so understanding local rules is crucial.

We can guide you through these aspects, ensuring your mortgage strategy aligns with your financial goals.

Cliffside houses overlooking a pebble beach and the ocean under partly cloudy sky

Get In Touch

Owning a holiday let property can be a rewarding investment, providing both rental income and personal enjoyment. However, financing a holiday let differs from standard buy-to-let mortgages, with lenders assessing affordability based on projected short term rental rather than long-term tenancy agreements.

At MSP Financial Solutions, we specialise in securing tailored mortgage solutions for holiday lets, ensuring you access the right lenders and competitive terms to maximise your investment potential.

What our clients have to say

  • Donny from MSP was superb at helping me.

    Donny from MSP was superb at helping me get my initial mortgage as a first time buyer. He spent time guiding me through the process and answering all of my questions.

    When it came time to remortgage I knew I was in safe hands with Donny. He helped explain all the range of different options available and their respective pros and cons. Most importantly though, he helped me to lock in the best rate a few months prior to my remortgage date. With subsequent market movements it was great to have piece of mind that we had locked in early.

    I would have no hesitation in using Donny and MSP Financial again! Thanks again Donny!

  • I’ve always been impressed

    Chris Sykes at MSP Financial has handled all my mortgages over the years, and I’ve always been impressed by his professionalism and attention to detail. He doesn’t just find a deal and leave it there, he keeps an eye on things and always lets me know if there’s a rate drop or a better option available. Where other brokers might miss those opportunities, Chris makes sure I never do. He’s clear, thorough, and genuinely has your best interests at heart. Absolutely worth the fee for the level of service and peace of mind he provides.