Holiday Let Mortgages
We have temporarily restricted our lending criteria, for the latest updates and essential information during the COVID-19 pandemic read our FAQs.
Important information: your mortgage and the stamp duty holiday
Ahead of the stamp duty holiday deadline on 31 March please be aware we cannot guarantee your mortgage will complete in time for you to be eligible. This particularly applies for purchase applications and any remortgages where additional borrowing for any onward purchase is required.
For information about the stamp duty holiday and rates which will apply from 1 April please click here.
A holiday let mortgage could help you realise your dream of owning a second home - perhaps a coastal cottage, a farmhouse in the rolling countryside, or a lakeside retreat for a UK getaway. Designed for people who want to borrow money for buying a property to be let out short term to tourists, holiday let mortgages can provide a boost to your income as well as a place to escape for a break.
The UK is a desirable holiday destination for overseas tourists, even more so due to the weakening pound, and the ‘staycation’ is also a more attractive option for UK holidaymakers. It seems the Great British Holiday is making a comeback, and renting out a holiday let property could capitalise on this. With beautiful countryside and coastal locations it’s no wonder more of us are looking to explore it, whether for a weekend break or a lengthier stay over the summer.
Mortgages for holiday let landlords
We’ve extended our buy to let mortgage options to include a range of holiday let mortgages for applicants specifically looking to purchase or remortgage a holiday let property in England and Wales. All products are available with a maximum 80% Loan To Value (LTV), on capital and interest, part and part or interest only repayment basis. First time landlords of at least 30 years of age are welcome to apply, and if an applicant is already a buy to let or holiday let landlord, the minimum age is lowered to 21. Applicants must already own or mortgage their own home.
Holiday Let 3.90% 2 Year Discount Rate 80% LTV
- VARIABLE RATE of 5.24% with a discount of 1.34% for 2 years then changing to Ipswich Standard Variable Rate (currently 5.24%)
- 5.2% APRC
- For purchase and remortgage up to 80% LTV
- Minimum property value £100k, minimum loan £75k
|Completion Fee||Application Fee (Payable with application and non-refundable)||Valuation Fee (Payable with application)||Higher Lending Charge||CHAPS (Fee for transfer of funds to solicitor)||Maximum Loan Amount|
|£950||£199||Purchase: based on property valuation. Remortgage: FREE||-||£35||£500k|
No charge for overpayments of up to 50% of original loan amount
Early repayment charge period ends 2 years from completion
Overpayment of 50% or above - early repayment charge is 1% of the overpayment
Redemption - early repayment charge is 1% of the original loan amount
For remortgage only: fee assisted legals
DISCOUNT EXAMPLE: A mortgage of £305,000.00 payable over 25 years initially on our Standard Variable Rate currently at 5.24% with a discount of 1.34% for 24 months, giving a current rate payable of 3.90%, then on our Standard Variable Rate for the remainder of the mortgage term would require 24 monthly payments of £1,598.25, followed by 276 monthly payments of £1,815.94. The total amount payable would be £540,121.44 made up of the loan amount plus interest (£233,572.44), an application fee of £199, a completion fee of £950, a valuation fee of £270, a mortgage funds release fee of £35 and a mortgage discharge fee of £95. The overall cost for comparison is 5.2% APRC representative
Holiday let mortgage criteria
- Maximum term 30 years
- We welcome first time landlords aged 30+, or for existing landlords with two year’s experience our minimum age is 21
- Portfolio landlords or limited companies are not eligible for these products
- Applicants are permitted to own a maximum of three rental properties (holiday let and buy to let) inclusive of the mortgage they wish to apply for
- No maximum age restriction
- Total loan to individual/joint borrowers not to exceed £750,000
- Minimum loan of £75,000 and a maximum loan cap of £500,000 apply, with a minimum property value of £100,000
- Owners may occupy the mortgaged holiday let property for personal use for up to 60 days per year
- The potential rental income will be calculated by a Holiday Letting Agent and a letter is required to confirm the known weekly rental income, or anticipated revenue during low, medium, and high season. An average will be taken and multiplied by 30 weeks to give an indicative annual figure. If there is a minimum two-year history of occupancy the average will be multiplied by 35 weeks
- At least one applicant must have a minimum salary of £25,000 gross p.a
- Applicants' employed income, pensions, investments, or additional sources of income can be taken into account when calculating affordability
- No HMOs, properties in holiday parks or Airbnb lettings
- Property must be of single dwelling and standard construction