Use our holiday let mortgage calculator to explore how much you might be able to borrow. To help your financial planning, we have included a helpful interest rate slider to give you a simple illustration of what your monthly interest payments might look like, based on an interest only mortgage. Finally, if you are buying a holiday let, then don’t forget about the higher stamp duty costs – just click the link below to see what the charge should be, and make sure you include it in your purchase budget.
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:
- Maximum Loan To Value (LTV) is normally around 75% and whilst slightly higher levels might be possible, they normally result in much higher interest rates.
- Maximum loan size is usually limited to around £750,000 for low LTV’s and again, whilst higher is possible, it often comes at a cost in terms of interest rate.
- Lowest initial interest rates start at around 1.99% usually on a fixed or variable rate for a 2 year period, excluding all fees. Such low rates are only available for “perfect fit” clients where both the property and customer profile are considered to be low risk by the lender and the LTV is low at around 60% or less.
- 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: Feb 2020