Holiday Let Mortgages | LDN Finance

Holiday Let Mortgages

Have you found the perfect coastal retreat or city break holiday home for you to escape to but want to rent it out when you’re not there? A holiday let mortgage could be the answer.

holiday let mortgages

At LDN Finance, we specialise in securing holiday let mortgages that give you the flexibility of letting your dream holiday home out, while allowing you to reap the benefits of being able to stay there too.

Rather than a long-term buy to let (BTL) mortgage, a holiday let mortgage allows you to purchase a property that will be let out on a short-term basis to holidaymakers as a business. You will find that you will be able to let out your property at a much higher price point, whilst also still being able to use it as a holiday home. An attractive alternative to standard buy to let mortgages, holiday let mortgages are becoming an increasingly attractive investment opportunity as a growing number of Britons look to embrace the rise in popularity of UK staycations.

Whilst many other brokers are struggling to secure desirable outcomes in this popular area of borrowing, our specialist holiday home mortgage advisers have been achieving fantastic rates for our clients.

To discuss your holiday home mortgage aspirations in more detail, get in contact with our expert team today and we will assign you with a personal mortgage adviser who will guide you through the entire mortgage and property-buying process.

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Service excellence is at the heart of our business. We are renowned for our highly personal and bespoke approach to securing property finance for our clients, ensuring you feel in control and confident throughout your investment journey.



We thrive in complex, challenging scenarios and work creatively in our negotiations with our trusted network of mainstream, private and specialist lenders to ensure we always secure the best possible outcome for your circumstances.



We mean it when we say we see you as a valued partner. Our relationship with you is important to us and our team will continue to serve as your personal property adviser long after your first deal with us is completed and over the line.

What are the benefits of a holiday let mortgage?

A benefit for potential investors is that some holiday let mortgages allow you to rent out the property for far more money than your usual buy to let (BTL) property. This means you can generate a much larger income from your investment whilst also improving your lifestyle with the addition of a holiday home.

Many of our clients with this type of borrowing facility have gone on to use easy listing management sites, such as Airbnb in particular. This enables them to charge a much larger rent for shorter stays over the period of a week or two than many BTL properties would charge for a month’s rent.

Other advantages of instructing LDN Finance includes:

  • Higher rental yield for shorter-stays than standard, long-term buy to let income
  • Allows you to stay at your holiday home across the year as well as letting it out
  • Tax-efficient mortgage solution
  • Bespoke service to find you the best borrowing options to suit your lifestyle
  • Bridging & Commercial ‘Service Excellence Broker of the Year’ 2020 & 2021

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Market-leading holiday let mortgage solutions

Our strong relationships with both our valued clients and trusted lenders mean we are expert problem solvers who can think creatively about your case and get the deal over the line. We regularly secure complex holiday let borrowing facilities for high net worth clients, first-time buyersexpatsforeign nationals, and self-employed individuals.

Not only this, but we are proficient in navigating complex scenarios too, such as foreign income, high loan to value (LTV) requirements, and Lombard lending. No matter how complex your scenario may be, our expert team will work tirelessly on your behalf to secure you the very best terms for your circumstances.

At LDN Finance, our strong working relationships with an unrivalled network of lenders means we can provide our clients with market-leading rates and solutions when it comes to securing holiday let property finance. If you would like to find out more about rates, eligibility criteria and explore your holiday let options, get in touch below.

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Holiday Let FAQs
Am I allowed to let my property on Airbnb?

Before renting your property on Airbnb, there is various legislation and rules in the United Kingdom which will determine whether or not you are able to rent your house for short-term lease on Airbnb and similar through similar businesses.

Leasehold Properties

Check your lease agreement carefully if you own or are looking to buy a leasehold property. Some homes are for “private residence only”, in which case you’ll be disallowed from renting out your property short term.

Regulations by Region

Some cities and regions have restrictions on short-term rentals. Be sure to research the destination to see if there are any additional rules and regulations.

Visit the Airbnb website to learn about local regulations and other important factors to consider before becoming an Airbnb host.

Do LDN Finance provide me with an expert adviser or should I seek external help before contacting?

LDN Finance will assign you with an expert mortgage adviser who will guide you through the entire process in securing a holiday let mortgage. While we can make suggestions with regard to your ideas for renting out your property on a short-term basis, the rental process would be your responsibility.

What is involved in buying a holiday home to let?

There are very different considerations to keep in mind when buying a holiday let property, compared to buying your own home, and we’d strongly recommend thinking about the following before you commit to a property:

Research the Market

Identify market opportunities with the help of estate and lettings agents. They’ll be able to advise on many specific areas within the cities and villages you’re considering. If you’re planning to personally run and maintain your holiday let, you should also consider the travel distance from your home.

Understand your own financial situation

Keep in mind whether you’re buying the house for capital gain on sale, or consistent monthly rental income. The type of mortgage required will change depending on these circumstances, and then you’ll need to consider your price point.

Charging too little will result in a fully-booked property that doesn’t cover the expenses of your mortgage, while going too high will result in a property that’s empty during holiday season.

Let our expert advisers guide you through the process.

While you may want to discuss with an expert beforehand, LDN Finance will assign you with a personal mortgage adviser who can guide you through every aspect of your entire mortgage and property-buying process, ensuring that the circumstances meet and the property is right for your requirements.

Ensure you’re buying a property with sufficient profit margin.

Cheap properties requiring significant renovation can potentially be lucrative, but require a lot of initial work. If you’re going along this route, make sure that you have the time and money to complete the project. It may be worth initially investing more in a complete and fully functional property solely to get on market earlier and generate income quicker.

Ensure you’re aware of new and updated safety regulations.

By law, you’re responsible for the property complying with various safety regulations, such as the fire safety of furniture and furnishing, gas safety, electrical equipment safety, installation of a smoke detector, and so forth.

You’ll also need certificates to prove these regulations have been met. Failure to comply with the law can result in serious consequences.

Tax implications

A Holiday Let investment attracts several different taxes. Aside from Stamp Duty Land Tax, which you have to pay when you purchase any Holiday Let property, you may also have to pay Income Tax on the rent you receive and Capital Gains Tax when you sell the property. Rental income must be declared on a Self Assessment tax return. However, you can deduct costs such as mortgage interest and letting agency fees from the rent you receive first. And like anything else you own, a Holiday Let property will form part of your estate for Inheritance Tax purposes. There may also be tax advantages relating to any capital you spend in kitting out your property. We recommend that you speak to an accountant for more in-depth information.

Are there big differences between a Buy To Let mortgage and a Holiday Let mortgage?

Yes, there are.

From a mortgage lenders perspective, a standard Buy To Let mortgage will typically require an AST type tenancy agreement to be arranged, normally for a 1-3 year period. For a holiday let mortgage, the mortgage lender will allow you to let the property on a short term basis.

For a property to qualify for tax as a furnished holiday let, HMRC has conditions that must be met. Specifically:

  • Your property must be available for at least 210 days a year
  • It must be let out for at least 105 days a year.

Furthermore, each individually furnished holiday-let property must be let for no longer than 31 days in a single instance. If a stay is continuous for a longer period, it is not counted towards the 105 days a year required for tax purposes.

Letting to friends or relatives at reduced rates also isn’t considered.

The primary advantage of a holiday let property, as opposed to a buy-to-let property, is that you can still deduct mortgage interest payments from rental income generated by the property, reducing profits and thus impacting the amount billed for tax. You’re also allowed to stay in the home outside the 210 day-a-year availability requirement.

With a buy to let mortgage, this is designed for long-term letting instead, and doesn’t facilitate you living in that property at any point.


Our happy clients

Not only have I used LDN Finance myself on several occasions but I also refer clients. They are always exceptionally helpful, quick to respond and go out of their way to help. An absolutely excellent business, I cannot recommend them more highly.

Ms. H

July 2021

Andrew Chalton not only gave me excellent and very tailored and commercial mortgage advice, but he also helped me understand various other aspects of the purchase. Incredibly helpful, responsive, creative and supportive. I would recommend him and LDN Finance to anyone!

Ms. P

March 2021

We worked with Andrew Chalton and the service we received was excellent. We were particularly impressed with how easy, quick and efficient Andrew and his team were to deal with. We will certainly be using LDN Finance again and we would not hesitate to recommend Andrew.

Ms. K

April 2021

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