Holiday let finance assessed on letting income
We arrange holiday let finance for buyers and investors funding a furnished holiday let. A holiday let is assessed on the income it can earn from letting, so a lender sizes the loan on the projected letting income across the season rather than on your personal salary. We package the projections, the location and the property and place the case with the specialist holiday-let lenders, for a purchase, a refurbishment or a refinance.
Stabilising holiday lets
A holiday let is a short-let trading property, so holiday let finance is assessed on the income the property can earn from letting rather than on a personal salary. A specialist holiday-let lender sizes the loan on a projected letting income across the season, usually supported by a letting agent's assessment of low, mid and high-season achievable rates, and tests that the projected income covers the debt at a stress rate. This is different from a residential or buy-to-let mortgage, where the assessment leans on a single assured tenancy rent or the borrower's income.
The staycation market is resilient. The market-wide average gross annual income per let property was about £25,600 in 2025, with five-bedroom lets averaging £48,200 and demand for properties sleeping six or more up 25% year on year (Sykes, Staycation Index 2025). Earnings vary widely by region, size and occupancy, so the projection and the location do the heavy lifting in the underwriting, and a lender reads a well-located, larger property differently from a small cottage in a thin market.
How the property is used and held shapes the finance and the tax position. A property let as a furnished holiday let, and marketed for short stays, is financed as a holiday let rather than on a residential mortgage, and a lender will want to see it will genuinely be let rather than lived in. Where a holiday let is bought through a company as an investment, the case is commercial throughout; where it will also be a second home you use, the basis and any regulated element are considered case by case.
We package the letting projection, the location, the property and any track record so the specialist holiday-let lenders can price the case. We run the market across purchase, refurbishment and refinance lenders rather than approaching a single bank, and size the loan on the projected letting income the property supports, framed as indicative and never as an offer.
What we fund
- Furnished holiday lets bought on projected letting income
- Holiday cottages and coastal or rural lets across the UK
- Larger, higher-occupancy lets sleeping six or more
- Purchase plus refurbishment to reach a lettable standard
- Conversions of barns or outbuildings to holiday-let use
- Refinance of an existing holiday let to release equity
Indicative terms
- Loan to valueCommonly up to around 70 to 75% of value
- Income basisProjected letting income, not personal salary
- ProjectionLow, mid and high-season achievable rates evidenced
- Stress testProjected income tested to cover debt at a stress rate
- PropertyMust be a genuine short-let, not owner-occupied
- RefurbishmentBridge to a lettable standard, then a term refinance
- Key testsLocation, occupancy, achievable rate, projection
Indicative only. Terms vary by lender, asset and scheme and are not an offer of finance.
How we arrange holiday let finance for purchase, refurbishment and refinance
We arrange holiday let finance around the projected letting income. For a purchase we place a holiday-let mortgage, commonly up to around 70 to 75% of value, sized on a letting projection, usually a letting agent's low, mid and high-season achievable rates, stress-tested to cover the debt. For a property that needs works to reach a lettable standard, or a barn or outbuilding conversion, we structure a refurbishment bridge that funds the purchase and the works, then refinance onto a holiday-let mortgage once the property is finished and letting. For an established let we refinance to release equity into the next property. We frame every figure as indicative and never as an offer; the terms depend on the location, the projected income and the property.
What lenders assess on a holiday let
Lenders underwrite a holiday let on the projected letting income, the location and the property, then size the loan on that income stress-tested to cover the debt, rather than on a personal salary. They want a credible projection, usually a letting agent's assessment of achievable low, mid and high-season rates, and evidence the property will genuinely be let as a short-let rather than lived in. They read a well-located, larger property in a strong staycation market differently from a small cottage in a thin one, because occupancy and achievable rate vary widely by region and size. As a broker with no exclusive tie, we present the projection and the property honestly and place the case with the specialist holiday-let lenders whose appetite fits. We arrange the finance; the commercial holiday-let lending we arrange is unregulated.
From a lettable property to a proven income and a refinance
The exit on a refurbishment bridge is a finished, letting property and a refinance onto a holiday-let mortgage on the proven income, or a sale. A new or converted holiday let takes a season or more to build occupancy and reviews before earnings are proven, and once the letting income is demonstrable a lender will size longer-term debt on it. The staycation backdrop supports the exit: an average gross annual income per let of about £25,600 in 2025, and demand for larger properties sleeping six or more up 25% year on year (Sykes, Staycation Index 2025). Once the income is proven we term out onto a holiday-let mortgage or refinance to release equity, framed on the projected and then the achieved letting income.
Finance that suits this asset class
- Commercial mortgagesHoliday-let mortgage sized on projected letting income.
- Acquisition financeFunds the purchase of a furnished holiday let.
- Bridging financeFunds refurbishment or conversion to a lettable standard.
- RefinancingRefinances a proven holiday let to release equity or re-rate.
Stabilising holiday lets?
A view on fundability within one working day.
What drives a holiday let's numbers
A holiday let earns from short-stay bookings, so the economics turn on occupancy across the season, the achieved nightly rate and the property's appeal to larger, multi-generational groups, which command the strongest income. Sykes reports market-wide average gross income around £25,600 in 2025, with five-bedroom lets averaging £48,200 and demand for properties sleeping six or more up 25% year on year (Sykes Staycation Index 2025). A lender assesses the projected or evidenced letting income, the alternative assured-shorthold or residential value as a fallback, and the seasonality of the trade. We model maintainable letting income after management and void periods, because that is what a specialist holiday-let lender sizes against.
Indicative holiday let finance and structures
Indicatively we arrange holiday let mortgages to around 70 to 75% of value, assessed on the projected or evidenced letting income with the residential value as a backstop, over specialist terms. For a purchase and refurbishment we arrange bridging for acquisition plus works, then a refinance onto a holiday-let mortgage once the property is furnished, listed and letting. A portfolio of lets can be financed on a single facility. These are market-typical, indicative structures and never an offer or a quoted rate; the terms depend on the location, the letting income and the property, and we run the market for the keenest fit.
Frequently asked questions
How does a holiday let mortgage work?
A holiday let mortgage is assessed on the income the property can earn from letting, not on your personal salary. A specialist lender sizes the loan on a projected letting income, usually a letting agent's assessment of achievable low, mid and high-season rates, and stress-tests that projection to cover the debt. Leverage commonly runs up to around 70 to 75% of value. It differs from a buy-to-let mortgage, which leans on a single assured tenancy rent, because a holiday let earns variable short-stay income across the season.
Is it hard to get a holiday let mortgage?
It is a specialist product rather than a difficult one, provided the projection and the property stack up. Lenders want a credible letting projection, a location with real staycation demand, and evidence the property will genuinely be let rather than lived in. A well-located, larger property is straightforward; a small cottage in a thin market or a weak projection is harder. We package the projection and the property and run the specialist holiday-let lenders, so the case reaches the desks most likely to say yes.
How much can I borrow for a holiday let?
Leverage commonly runs up to around 70 to 75% of value, but the binding test is the projected letting income stress-tested to cover the debt, so a higher-occupancy, larger property in a strong staycation market borrows more than a small cottage on the same price. The projection, usually a letting agent's low, mid and high-season assessment, does the heavy lifting. We frame leverage as indicative and never as an offer, and size the case on the income the property genuinely supports.
What is the difference between a holiday let and a buy-to-let?
A buy-to-let is financed on a single assured tenancy rent, while a holiday let is financed on variable short-stay letting income across the season, so the two use different mortgages and different assessments. A holiday-let lender sizes the loan on a projected letting income rather than a fixed monthly rent, and wants evidence the property is a genuine short-let. If a property switches between the two uses, the financing basis changes with it, which is why the intended use matters at the outset.
Can you finance a barn or outbuilding conversion to a holiday let?
Yes. A conversion is usually funded with a refurbishment bridge that covers the purchase and the works and buys time to finish and start letting, then a refinance onto a holiday-let mortgage on the proven income once the property is complete and generating bookings. We structure the bridge to the works programme and pre-agree the refinance route, sizing the eventual mortgage on the projected and then the achieved letting income. The terms depend on the works, the location and the projection.
Stabilising holiday lets?
Tell us about the asset and the income plan and we will come back with a view on fundability and likely terms.