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Holiday Let variable for 2 years

Take advantage of a two year discounted rate on this Holiday Let mortgage to purchase or remortgage an investment property to rent out as a holiday rental/Airbnb.

Get an idea of how much you can borrow with our affordability calculator. The calculator will work out the maximum amount you could borrow by using a 5 year fixed rate to calculate the highest mortgage possible. Where a 5-year fixed rate is not available, the lowest rate will be used, stressed at +2%. Please contact the team to discuss your specific circumstances.

The Society is one of a handful of Lenders who offer specially designed mortgages for properties that are used as holiday homes. The property must be in England, Wales or mainland Scotland and be of standard construction and have a minimum value of £100,000.The maximum loan-to-value (LTV) is 70%, reduced to 65% for mortgages over £300,000.

We do not lend on properties on sites but can consider Airbnb arrangements if the whole property is rented rather than a single room. Also, you can use the property for up to 60 days per year.

Properties with restrictive usage or holiday let covenants are acceptable. Properties with such covenants or with more than four bedrooms will also have a maximum 70% LTV restriction.

The mortgages listed below move on to our Standard Variable Rate, 5.60% (variable), after the initial rate period.  Our SVR is increasing to 5.75% (variable) from 1st July 2022.

There may be a limit on how low your interest rate can fall. This is called an ‘interest rate floor’. The interest rate floor applicable to your loan will be specified in your loan documentation.

rate i
Discount from SVR iOverall cost for
comparison i
Max %
type i
4.20%1.40%5.6% APRC70%Interest only and repayment options available
See example

Representative example: A mortgage of £215,000.00 taken out for a period of 26 years on an interest only basis.
Monthly instalments: £752.50 per month for 23 months, followed by £1,007.07 per month for 288 months.
Total amount payable: £524,337.66.
Total amount of credit: £215,000.00.
The total amount payable includes valuation fee £395, product fee £1,499 and closing fee £100.
The overall cost for comparison is 5.6% representative APRC.
This example relates to the Holiday Let 4.20% variable for two years product. It is based on our current Standard Variable Rate of 5.60%, with no fees added to the mortgage.

Please ask for a personalised illustration for your own particular requirements.

Monthly payments calculator

Use the calculator to find out what your monthly payments might be based on the mortgage product and the type and term of your borrowing.

Mortgage details

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Please scroll down for monthly payments by product.

This is the maximum amount based on the information you provided. Your mortgage adviser will take you through the application process and will calculate the amount you can afford to borrow based on your income after the deduction of those expenses and commitments. Further restrictions may apply for specialist products.

  • Key features
    • Availability – Purchase & Remortgage up to 70% Loan To Value (LTV). Minimum deposit of 30% required.
    • Flexibility – Overpayments up to 20% of the capital balance as at 1st January are allowed in each calendar year without penalty.
    • Portable.
  • Early repayment

    There are no early repayment charges for this mortgage but a closing fee, currently £100.00, which is payable when repaying the mortgage in full.

  • Product fees


  • Lending criteria

    Lending Criteria and Information

    Loan:Size: Minimum £50,000, Maximum £300,000 at 70% and £300,000 to £500,000.00 at 65%
    Term: Minimum 5 years, Maximum 40 years.
    Repayment Type: Capital Repayment, Interest Only.
    Property:Minimum value is £100,000. The property must be in England, Wales or mainland Scotland and be of standard construction. No properties on sites. Flats or apartments up to 70% LTV at £300,000 or 65% at £500,000. Properties with restrictive usage or holiday let covenants are acceptable providing that they are used in compliance with that restriction. Properties with such covenants or with more than four bedrooms will have a maximum LTV of 70% LTV at £300,000 or 65% at £500,000. Must be in England, Wales or mainland Scotland.
    Applicant:Age: Minimum 25, no maximum, subject to income in retirement.
    Income:Household income must be at least £30,000.
    Rental:The calculation is based on the actual or expected rental on an AST basis. Rent must cover 125% of the ‘stressed mortgage payments’ for basic rate tax payers, or 145% for higher rate tax payers. The stressed mortgage payment is based on the product rate +2% or 5.5% whichever is higher.
    Underwriting:We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk. We will consider holiday lets throughout England and Wales subject to acceptance by the Society’s valuer. Holiday lets with restrictive usage covenants are acceptable providing that they are used in compliance with that restriction.
    Other informationYou must be able to service your existing commitments from income without recourse to the rent from this property. If you have a Buy to Let or Holiday Let portfolio, you will need to demonstrate that this is self-funding.
  • Proc fee

    We will pay a gross procuration fee of 0.35% on all introduced business. The fee is usually paid within five working days following completion. Procuration Fees may vary for our recognised Clubs & Packagers.

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This section is for use by professional Intermediaries only. If you are a customer please visit our Mortgage section.