The standard Buy to Let (BTL) is assessed using the monthly tenancy the property can achieve. With a holiday let, most lenders will be able to consider the higher income these properties tend to generate.  This is normally calculated using an average of the projected Low, Mid and High season weekly rental yields, multiplied by an assumed 30 weeks occupancy.

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 For example, if high season = £700, mid-season = £500 and low season = £300, the lender would use the average of £500 over 30 weeks to give an annual rental figure of £15,000. They would then apply their rental check which could be 145% coverage needed at an assumed payable rate of 5.5%. 

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£15,000 / 145% = 10344

10344 / 5.5% = 188087

Maximum mortgage would be £188,087

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Of course, lenders like to make it tricky by using different calculations. Some with only use a standard tenancy agreement to assess potential mortgages. Some may look at your total income and outgoings to decide what they will lend. 

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Your next step should be to contact a broker to see how they can help.

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General FAQs

Can some lenders consider Air BNB or Booking.com properties?  Yes

Will some lenders will allow owners to stay in the property? Yes, potentially for up to 60 days of the years 

Can some lenders allow me to buy a holiday let with a Limited Company? Yes

Can a First Time Buyer get a holiday let? Yes

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Your property may be repossessed if you do not keep up repayments on your mortgage.Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority

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