Frequently Asked Questions about Holiday Let mortgages

A Holiday Let mortgage is a specialist product for holiday rental investments. That is properties that are rented out multiple times on a short term basis throughout the year. A property purchased using a Holiday Let mortgage must be rented out and cannot be used as a holiday home by the owner. Many products do allow landlords to stay in the property themselves for a specific period each year.

Buying a holiday let via a Limited Company is common practice. If your business is not a limited company, then you are treated as a private individual for the purchase. You may find the interest rates and fees are higher for lending to a Limited Company.

To get a holiday let mortgage you typically need at least a 25% deposit. Lenders often view the risk of short-term letting as higher than other standard Buy to Let properties. You can view our current LTV’s (loan to value) on this page.

You can view the criteria for the Bath Building Society Lld Company Holiday Let products on this page.

You can view the current maximum LTV for our Holiday Let and Ltd Co Holiday Let products on this page.

Personal use of the property is allowed for up to 60 days a year.

Affordability is calculated using estimated rental income from a mortgage valuation. This is the same as with a Buy to Let application. This can differ for other lenders.

Bath Building Society accepts properties of traditional construction, that is suitable to let from day one. Other lenders criteria may differ.

Bath Building Society lending criteria does not include this.

Bath Building Society only accepts multi unit properties on a buy to let basis, not a holiday let.

We do not offer Holiday Let mortgages on mixed use properties at Bath Building Society. Other lenders criteria may differ.

Yes, if it is used for short term lets and personal use is less than 60 days each year.

Bath Building Society do not offer Holiday Let mortgages on properties on non standard construction.

You can view our minimum and maximum loan amounts on this page.

You can view our minimum and maximum loan amounts on this page.

You can view the minimum term for our Ltd Company Holiday Let mortgages in the lending criteria on this page.

You can view the maximum term for our Ltd Company Holiday Let mortgages in the lending criteria on this page.

Bath Building Society considers the rental a holiday property would achieve if it is let on a standard rental agreement.

If you choose to change the use of the property to permanent residential, you will need to inform us and remortgage to a residential mortgage product. This will be subject to underwriting.

There is no minimum trading period if the Limited Company is set up purely for this purpose, known as a Special Purpose Vehicle (SPV). If the Limited Company is trading for other purposes, we require three years trading history.

A Holiday Let mortgage can be interest only or repayment.

Our current mortgage range is available for properties in England, Scotland and Wales. We do not offer mortgages on overseas properties.