Holiday Let Mortgage Calculator

Welcome to Holiday Cottage Mortgages!

The UK's leading holiday let mortgage specialist

HCM was founded by holiday letting experts who understand the holiday letting market, ensuring your mortgage application is properly structured and completed, giving you the best chance of success.

Alongside our smart technology, we provide fully qualified mortgage advice, ready to help you every step of the way.

HCM-Photo-Test-02

Getting started is simple

  • 1

    Complete an initial assessment

    Complete and submit the initial assessment, it takes less than 5 minutes.

  • 2

    Leave the heavy lifting to us

    Our team will scour our unique database of holiday let lenders to find you the best rate possible for your situation.

  • 3

    Speak to an Expert

    One of our in-house holiday let mortgage experts will their findings.

In just 5 minutes ...

Request your free mortgage assessment

Discover how much you can borrow and what the best holiday let mortgage rates are by creating an account and completing our free, initial assessment.

  • Complete the form
  • Answer the assessment questions
  • Receive your personalised results direct from our Experts
  • It's that simple!

It takes no more than 5 mins, after which one of our expert mortgage consultants will provide you with your own, personalised results.

Our initial assessment is free of charge. However, once we go ahead and apply for your mortgage, when we get your formal mortgage offer, we will charge you £995. That means: no mortgage offer, no fee (see Terms of Use).

 

What are our customers saying?

I am an asset rich retired person & was looking for a fully furnished holiday home mortgage. As I have no actual weekly/monthly income my bank of 30 years HSBC won't not even consider an application. I signed up with Andy & his team and they jumped through hoops to inform &...
a month ago via Google
Dave Needham
Holiday Cottage Mortgages were helpful, polite and efficient. We were let down by a previous potential lender and HCM stepped in finding the right product for us at the right price Tom worked very hard to process the application quickly and without stress. Highly recommended
a week ago via Google
Sue Allison
Excellent service from start to finish with a very difficult sale. Always on hand to offer help and support and nothing was too much trouble. Andy and team are fantastic and I will definitely be using this service again.
a month ago via Google
Jessica Palmer

Current Mortgage Rate Examples

To help you explore your options, below is a rough guide to some key mortgage criteria, taken from a broad view across the holiday let mortgage market. The following is accurate at the time of writing, but is subject to change:

  • Lowest initial interest rates at 60% Loan to Value (LTV) start at around 3.40%, whereas at 75% LTV, you might expect rates around 3.75% to 4.00%, usually on a variable or fixed rate for a 2 year period, excluding all fees.
  • If you are thinking of a Limited Company Holiday Let Mortgage, then at 65% LTV, rates are currently around 3.50%, whereas at 75% LTV they are around 3.75% to 3.90%, again, usually on a variable or fixed rate for a 2 year period, excluding all fees.
  • Maximum LTV is normally around 75% and whilst slightly higher levels might be possible, they normally result in higher interest rates.
  • Maximum loan size is usually limited to around £1m for low LTV’s and again, whilst higher is possible, it often comes at a cost in terms of interest rate.
  • Minimum joint income is normally expected to be above £30,000, but can rise to over £80,000 for the better deals and those mortgages with higher LTV’s or bigger loan sizes. If you are self-employed, expect to be able to demonstrate at least 2 years of good trading results.

Please note that these are examples only and are not any suggestion or guarantee that you will be able to get a mortgage offer. We are just trying to be helpful!

Updated: January 2021

Where are the mortgages from?

Any of the usual providers you'd expect to see, plus a few more that you may never have heard of.

Our team speaks directly to banks and building societies, including “intermediary only” lenders and a range of other niche providers to get you the best possible holiday let mortgage.

We are fully authorised to arrange holiday cottage mortgages on your behalf, taking away the hassle and misery of the traditional mortgage process, leaving you with more time to focus on your new holiday home.

What's great about us?

We're glad you asked.

With plenty of mortgage lenders and brokers out there, we understand why you'd ask. We're a digital broker with huge knowledge of holiday let mortgages, here to guide you through every step of the way.

  • Simple initial assessment
  • We take care of the legwork for you
  • Whole of market search
  • Personalised results provided by industry experts
HCM-Photo-Test-01

Holiday Let Mortgage FAQs

Can I still get a holiday let mortgage during Covid-19?

The answer is: Yes! During the pandemic we have seen unprecedented demand for holiday lets as investors flock to buy a new cottage and cash in on the long-term benefits offered by holiday letting. Tell us about your plans by completing a free initial assessment.

What interest rates are typical for holiday let mortgages?

Updated: January 2021. Lowest initial interest rates at 60% Loan to Value (LTV) start at around 3.40%, whereas at 75% LTV, you might expect rates around 3.75% to 4.00%, usually on a variable or fixed rate for a 2 year period, excluding all fees. Find out if you are eligible by completing a free initial assessment.

How much income do I need to get a holiday let mortgage?

Most lenders want to see some level of personal or “earned” income, other than that generated by property or investments. Typical minimum income is normally £25,000 to £30,000 pa. If you are self-employed, expect to be able to demonstrate at least 2 years of good trading results. Want to know if you will qualify?

Can I get a Limited Company holiday let mortgage?

Yes you can - we do them all the time! The process is more complex, requiring expert knowledge of company structures, legal charges and sources of deposit, like inter-company or Director's loans. HCM are very experienced in this field and we can guide you every step of the way.

How much deposit do I need for a holiday let mortgage?

In most cases, to buy a holiday cottage in the UK you will need a deposit of 25% of the property value. There are one or two lenders that might go higher, but they are not always available. Ready to see if you can get a holiday let mortgage?

What is the maximum I can borrow with a holiday let mortgage?

Loans of up to £1m are possible, if the property and all other key factors are right. Maximum LTV is around 75% of the property value with slightly better rates offered at 70% LTV, and even better rates at 60% LTV. Want to find out how much you could borrow?

Is a holiday let classed as a business?

Holiday lets are fundamentally residential homes but used in a way that HMRC deems to be a business when they conform to their Furnished Holiday Let regulations. You can read more about it here. Tell us about your plans by completing a free initial assessment!

Holiday let mortgages, done.

Get started today!