Holiday let mortgages.
Holiday let
For properties rented out for short stays and guest rentals you’ll need a holiday let mortgage.
Investing in a holiday let could give you an additional income stream from renting out to tourists, especially for desirable properties or those in a popular location. But that’s not all, as owning a holiday let property means you’ll also get to enjoy a getaway yourself every once in a while.
At Suffolk Building Society we know life isn’t one size fits all, and neither are our mortgages. Where others see numbers, we see people and we take time to understand your unique circumstances.
Here to help
Find a holiday let mortgage.
Our range of currently available holiday let mortgage products are shown below. Seen a mortgage product you like? Use our mortgage repayment calculator to get an idea of how much it’ll cost, or for general details about mortgages visit our mortgage information page.
Mortgage Name
Rate
Initial Rate
APRC
Rate Term
Max loan amount
Max LTV
Full Details
Holiday Let 2 Year Fixed Rate – for purchase or remortgage up to 80% LTV
Fixed
Product ID: Purchase: 29449, Remortgage: 29450
Fixed
Initial Rate
5.55%
APRC
8.2%
Rate Term
2 year
Max loan amount
£1m
Max LTV
80%
Holiday Let 5 Year Fixed Rate – for purchase or remortgage up to 80% LTV
Fixed
Product ID: Purchase: 29427, Remortgage: 29428
Fixed
Initial Rate
5.59%
APRC
7.5%
Rate Term
5 year
Max loan amount
£1m
Max LTV
80%
Holiday Let 2 Year Discount Rate – for purchase or remortgage up to 80% LTV
Variable
Product ID: Purchase: 24260 Remortgage: 24261
Variable
Initial Rate
5.54% (SVR minus 2.90%)
APRC
7.9%
Rate Term
2 year
Max loan amount
£1m
Max LTV
80%
Expat Holiday Let 2 Year Fixed Rate – for purchase or remortgage up to 80% LTV
Fixed
Product ID: Purchase: 29445, Remortgage: 29446
Fixed
Initial Rate
5.99%
APRC
8.4%
Rate Term
2 year
Max loan amount
£1m
Max LTV
80%
Expat Holiday Let 5 Year Fixed Rate – for purchase or remortgage up to 80% LTV
Fixed
Product ID: Purchase: 29447, Remortgage: 29448
Fixed
Initial Rate
5.89%
APRC
7.8%
Rate Term
5 year
Max loan amount
£1m
Max LTV
80%
Expat Holiday Let 2 Year Discount Rate – for purchase or remortgage up to 80% LTV
Variable
Product ID: Purchase: 24271, Remortgage: 24272
Variable
Initial Rate
5.79% (SVR minus 2.65%)
APRC
8.1%
Rate Term
2 year
Max loan amount
£1m
Max LTV
80%
Additional Borrowing (Holiday Let) Discount Rate – up to 80% LTV
Variable
Product ID: 78030
Variable
Initial Rate
5.84% (SVR minus 2.60%)
APRC
8.2%
Rate Term
2 year
Max loan amount
£500,000
Max LTV
80%
Additional Borrowing (Buy To Let) Discount Rate – up to 80% LTV
Variable
Product ID: 78029
Variable
Initial Rate
5.84% (SVR minus 2.60%)
APRC
8.2%
Rate Term
2 year
Max loan amount
£500,000
Max LTV
80%
Additional Borrowing (Buy To Let) Standard Variable Rate – up to 80% LTV
Variable
Product ID: 82005
Variable
Initial Rate
8.44% (SVR)
APRC
8.9%
Rate Term
3 year
Max loan amount
£500,000
Max LTV
80%
Holiday let
Our holiday let mortgage criteria.
Not all holiday let mortgages are created equal, so you’ll need to do your research in order to find a lender to suit your needs. To help you search for a holiday home mortgage here are some of the things you should know about what we offer at Suffolk Building Society.
- Landlords must have no more than three properties within the total portfolio, which includes any buy to let properties, and not operate their properties as a company or business.
- Owners may occupy the mortgaged holiday let property for personal use for up to 60 days per year.
- Properties must be of single dwelling and usually of standard construction, although we will consider non-standard construction on a case by case basis. We will consider leasehold properties and flats, but don’t currently lend on houses in multiple occupancy (HMOs) or properties in holiday parks.
- We will consider first time landlords who currently or have previously owned their own home and are aged 30+. For existing holiday let or buy to let landlords the minimum age is 21.
- At least one applicant must have a minimum annual income of £25,000, from employment, self employment a pension or investments
- Properties must hold a valid Energy Performance Certificate (EPC) and meet a minimum Energy rating of E, to be evidenced at application. Should the property be exempt from the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, evidence of exemption is required.
- The potential rental income will be calculated by a Holiday Letting Agent and a letter is required to confirm the known weekly rental income, or anticipated revenue during low, medium, and high season. An average will be taken and multiplied by 30 weeks to give an indicative annual figure. If there is a minimum two-year history of occupancy the average will be multiplied by 35 weeks.
Ready to begin? Take a look at our mortgage finder. We’re here to help so get in touch with us at any stage.
FAQs
All you need to know about holiday let mortgages.
A holiday let mortgage, sometimes called a holiday home mortgage, is needed to finance a property let out on a short term basis, usually for no more than two or three weeks at a time, where the tenants will be staying as part of a holiday.
A holiday let mortgage is for properties let out for short-term guest rentals, where tenants are spending time away from their home. A buy to let mortgage is for properties where tenants will be renting on a long-term basis as their main residence. For buy to let properties you can find out more on our buy to let mortgage page.
Usually lenders will have certain limits on how long you can stay in a property you have financed through a holiday let mortgage. Our mortgages allow homeowners to occupy their property for personal use for up to 60 days per year.
For holiday let mortgages we will need to calculate the rental coverage. This is done via a letter from a Holiday Letting Agent which needs to confirm the low, medium and high season anticipated or known weekly rental income. An average of these will be taken and multiplied by 30 weeks (35 weeks if the property has been let by the applicant for 2 years or more) to give an indicative annual figure. The annual rental must provide a minimum of 145% rental coverage based on the mortgage product initial interest rate + 2% or a minimum of 5.5%, whichever is greater. Should you choose a 5-year fixed rate mortgage, the stress rate scenario does not apply, so 145% rental coverage is calculated solely on the product pay rate.
Whilst we make our assessment based on the rental cover please note we require at least one applicant to have a minimum annual income of £25,000 from employment, self employment, a pension or investments.
Our holiday home mortgages are currently only for applicants who currently or have previously owned their own home. We do consider first time landlords though, with a minimum age of 30.
To see how much your mortgage for a holiday home might cost you each month visit our mortgage repayment calculator, where you will need to input how much you want to borrow, the interest rate and the length of the mortgage.
No. For long term tenants who will be using your property as their main residence you will need a buy to let mortgage. Find out more on our buy to let mortgage page.
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Find the right mortgage product for you.
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We have conversations, not algorithms.
Our decisions are made by experts, not computers. We need to calculate the financials, but we understand there’s more behind a mortgage than the numbers on a page. We can’t promise to lend to everyone and anyone, but we’ll consider most applications on an individual basis.
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