Investing in a holiday let property can be a smart way to generate extra income, diversify your portfolio, or enjoy your own getaway while earning returns.
However, arranging a mortgage for a holiday let is very different from getting a standard buy to let or residential mortgage. At FPM Advice Centre, we offer expert mortgage advice, whole-of-market access, and tailored support for holiday let buyers across the UK.
A holiday let mortgage is a specialist product for properties rented to holidaymakers on a short-term, furnished basis.
Unlike standard buy to let mortgages, they assess projected rental income, local demand, and your personal income.
During peak weeks and average occupancy Higher deposit requirements (usually 25%+)
(often £20,000–£40,000)
(usually 25%+)
And meet certain quality/condition criteria
We review your plans, property criteria, personal finances, and anticipated rental income.
We compare holiday let mortgages across the market to identify suitable lenders and the best available deals.
Lenders will require a professional letting agent’s estimate of the property’s annual rental potential (usually high, mid, and low season).
We assist you with the mortgage application, ensuring you provide all necessary proof of income, deposit, and property details.
The lender arranges a valuation to confirm suitability as a holiday let and validate projected rental income.
Upon approval, you’ll receive your mortgage offer. Your solicitor/conveyancer completes the purchase and any necessary licensing or local authority permissions.
Once completed, you can start marketing your property as a holiday let and welcoming guests!
We’re here for portfolio reviews, remortgaging, or expanding your holiday let investments.
Buy to let mortgages are for long-term tenancies; holiday let mortgages are for short-term, furnished rentals to holidaymakers. Lender criteria and tax treatment differ.
Yes, many lenders allow a set number of weeks per year for personal use, but the property must primarily be available as a commercial holiday let.
Most holiday let mortgages require at least a 25% deposit. More competitive rates are often available with a larger deposit.
Lenders often require a minimum personal income (not from the property) of £20,000–£40,000. Some specialist lenders may be more flexible.
Projected rental income is usually based on letting agent estimates for high, mid, and low season, and must cover a set percentage above the mortgage payments.
Furnished holiday lets can benefit from certain tax advantages, including deductible expenses and potential capital allowances. We recommend you seek advice from a qualified tax adviser.
Yes! We can help you remortgage an existing holiday let for a better deal or to raise capital.
Are you considering buying a holiday let property in the UK? Our expert team at FPM Advice Centre has created this step-by-step Holiday Let Buyer’s Guide to help you prepare, avoid common pitfalls, and get the most from your investment.
Review your credit report and check for any issues Save a deposit (usually 25% or more of the property price) Assess your personal income (most lenders require £20,000–£40,000 p.a.) Estimate all purchase costs (stamp duty, legal fees, survey, etc.)
Choose a location with strong holidaymaker demand Check local regulations, licensing, and planning permissions Research seasonal occupancy rates and average weekly rents Ensure the property meets lender and local authority requirements
Gather required documents (ID, proof of income, bank statements), Obtain letting agent rental income projections, Decide if you’ll purchase as an individual or via a limited company, Compare holiday let mortgage rates and terms
Appoint a solicitor/conveyancer with experience in holiday lets Understand furnished holiday let tax rules and benefits Register for business rates or council tax if needed Arrange suitable holiday let insurance
Decide if you’ll manage the property yourself or use an agent Set up cleaning, maintenance, and guest communication systems Register with booking platforms or local agencies Prepare a welcome pack, guest information, and safety certificates
Let FPM Advice Centre help you make it a reality with specialist holiday let mortgage advice, tailored product selection, and end-to-end support.
