Holiday Let

By leveraging a specialist lender that assesses affordability based on holiday let rental figures rather than AST rental income, a client successfully secured a 2-year fixed rate mortgage at 75% LTV, enabling them to maximize their property's income potential and raise additional funds for future investments.

12/5/20232 min read

a large building with a large body of water
a large building with a large body of water

The Client:

The client was looking to refinance a former Residential property that has been used as a second home.

The Scenario:

The value of the property was £600,000, but with the AST rental figure only being £1,400 per month, they wanted to explore ways of earning a higher income from the property.

Due to its coastal location, the property was confirmed to be ideal for use as a Holiday Let, so the client wanted to remortgage onto a specialist Holiday Let mortgage.

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Some lenders, although offering holiday / short term let products, still assess the maximum loan affordability off the AST rental figures, which was limiting the loan to approximately £400,000 on a 5 Year fixed rate. However the client wanted to raise 75% LTV to enable them to invest in more property, whilst only fixing their rate for 2 Years.

The Solution:

The remortgage was subsequently placed with a specialist lender who was able to use Holiday Let rental figures to establish affordability, which were much higher than the AST rental income figures.

The client had to go away and obtain a valuation from a local/regional holiday let expert who would need to confirm the average weekly rental in the low, mid and high seasons. The lender would then take an average of these over a 30 week period to use as the annual income. The figure resulted in £1,200 weekly average which over 30 weeks came to £36,000 annually as opposed to the AST rental figure of £16,800 per Year.

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The higher Yearly income figure allowed the client to secure a 2 Year fixed rate mortgage at 75% LTV with an interest rate of 3.29%, whilst raising an additional £50,000 out of the property to go towards their next investment.  


Being a whole-of-market Broker, we work with ALL Lenders including the Specialists. For more details on Holiday Let Mortgages.

If you have any questions relating to Commercial Finance, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on 0113 8730 740. Alternatively, please complete this short online form and one of our Advisors will call you right back.