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.

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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?

"The HCM portal is such an easy way of uploading all the necessary documents and guides you through the application"

Gayle

Property purchased in Wales

"We have been very impressed by the expertise and support we have received, and the online tools were very user friendly..."

Carrie

Property purchased in Dorset

"HCM are a great, professional, mortgage advisor who knows the holiday let market very well and understands which lenders will match..."

Emmanuel

Property purchased in York

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 3.20%, whereas at 75% LTV, you might expect rates around 3.20% to 3.50%, 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 60% LTV, rates are currently around 3.50%, whereas at 75% LTV they are around 3.50% to 4.0%, 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: 20 November 2020

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
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Holiday let mortgages, done.

Get started today!

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: November 2020. Lowest initial interest rates at 60% Loan to Value (LTV) start at around 3.20%, whereas at 75% LTV, you might expect rates around 3.50% to 3.85%, usually on a variable or fixed rate for a 2 year period, excluding all fees.

Can I get a Limited Company holiday let mortgage?

Most lenders want to see some level or personal or “earned” income, other than that generated by the property. Typical minimum income is normally expected to be £25,000 to £30,000 pa, but can rise to over £80,000 pa for the better deals. If you are self-employed, expect to be able to demonstrate at least 2 years of good trading results – read more here.

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.

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.

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.