Holiday Let Mortgage Calculator

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. Please be aware that Covid-19 is having a profound impact on current holiday let mortgage lending and the number of lenders currently serving the market is reducing rapidly.

The following is accurate at the time of writing, but is subject to change:

  • 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 2.45% 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: April 2020

"Initially, I tried to secure my holiday let remortgage directly with a lender, which turned out to be a waste of time. I was about to give up when I came across HCM who quickly took control of the situation and helped me navigate the various “bumps in the road” to find me the right lender. Now I have an offer allowing me to remortgage to a new, much better rate. Brilliant service!"

Property remortgage in Newcastle

"I approached HCM with a request to move quickly as there was some competition for the property I was purchasing. HCM certainly met the challenge and worked quickly, efficiently and professionally to get me the best mortgage deal. They have built an easy to use online system that I could access from my phone or tablet and coupled with a friendly service, I would not hesitate to recommend using them to friends and family."

Mrs Sutcliffe
Property purchased in Filey

“Initially I was unsure if I wanted to use a broker at all, but having discussed my plans with HCM it was clear that they are an expert in the field and know the key players involved in the process. Their online system is very easy to use and meant that I didn’t have to endure an awkward “mortgage interview”. I was in possession of my offer in about 2 weeks from application. I highly recommend HCM!”

Andrew & Carol
Property purchased in The Lakes

"Andy was excellent to work with all the way from the first telephone call through to completion and beyond. He understood and contributed to our plans, and navigated us through the entire process seamlessly. He has an incredible knowledge of the holiday letting industry and associated mortgages, and was always ready to respond to our endless questions with ease. His assistance was invaluable and we would definitely recommend!"

Mike & Fiona
Property purchased in Burnham Market