Holiday Let Products

Holiday Let mortgages are available to existing home owners who would like to purchase or remortgage a property which is used for holiday letting and is situated in Wales and England (including Isle of Wight).

Holiday Let House Purchase and Remortgage:

Please use the Buy to Let & HMO Application Form for Holiday Let mortgage applications.

Contact our Broker Team for further information.

Applicant Restrictions

Holiday Let Lending Criteria

Property Restrictions

Property is unacceptable if it is:
  • Non-standard construction.
  • Has restrictive usage covenants e.g. holiday let covenant.
  • Situated on a holiday park.
  • A shared ownership property.
  • Split into more than one unit.
Application Restrictions

Application Restrictions:
  • At least one party must earn at least £40,000 per annum and income to be derived from a source other than rent. If the term takes the mortgage beyond retirement, we will not need evidence of pension income.
  • Must be a property owner-occupier.
  • Minimum property value £150,000.
  • Term Minimum 5 years Maximum 30 years.
  • No more than 3 holiday let properties with the Society. Unlimited holiday let/BTL with other lenders.
  • Private individuals only (No Limited Company lending).
  • Minimum age 25 (21 considered on referral).
  • Maximum age at end of term - 85 based on the oldest applicant for a joint application.
  • Maximum age at the beginning of the term – 55 based on the youngest applicant for a joint application.
  • Assured Shorthold Tenancies are not to be created with occupation being on the basis of a licence i.e. occupants will have no rights.

Tenancy

  • Assured Shorthold tenancies are not to be created.
  • Occupation will be on the basis of a licence i.e. occupants will have no rights.

Rental Income

Rental Rule:
  • Rental income must be a least 45% more than the mortgage interest repayments (based on the initial rate payable plus 2% or 5.5%, whichever is greater).

Availability

Lending Area:
  • Whole of Wales & England (including Isle of Wight), subject to the property being located in an area commensurate with holiday letting.