Holiday Let Mortgages
Looking for a mortgage for holiday let? We are holiday let mortgage experts and will guide you with our trusted and flexible service.
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Holiday Let Mortgages

Welcome to common sense lending

Our mortgage decisions are made by real people, not computers. We consider cases that many other lenders don't, including multiple letting units on one title, properties across split titles, limited companies and more.

Welcome to peace of mind

  • We have 5 year fixed rate and 2 year variable rate mortgage options available.
  • Our expert lending managers provide a friendly and personal service.

Welcome to your new holiday let

Make it happen with a mortgage from The Cumberland:

  • We lend throughout mainland UK plus selected islands
  • We offer mortgages up to 75% LTV
  • We lend to first-time holiday let investors

We offer standard and non-standard mortgage products to suit your circumstances. View our lending criteria to find out which product applies to you.

To discuss your holiday let mortgage with a member of our team call 01228 403 141

Our Holiday Let Mortgage Rates

  • Standard Products
  • Non-Standard Products

    • Do you qualify for a standard product? View our lending criteria

    5 YEAR FIXED RATE

    Your interest rate is fixed at the rate shown until 1st March 2025, followed by our Commercial Variable Base Rate (CVBR), currently 5.24%, until the end of the mortgage.

    Loan To Value Initial interest rate for 5 years Overall cost for comparison Follow on rate Fee
    Up to 60% Up to 60% 3.24% 3.24% 4.4% APRC 4.4% APRC 5.24% £999 Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (5% before 2nd March 2021, 4% before 2nd March 2022, 3% before 2nd March 2023, 2% before 2nd March 2024 and 1% before 2nd March 2025 of the amount repaid) if you repay all or part of your mortgage before 2nd March 2025
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this fixed rate product until 1st March 2025 at 3.24% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 61 monthly payments of £733.94 and 143 monthly payments of £818.85.

    The total amount payable would be £163,040 made up of the loan amount plus interest (£46,859), arrangement fee (£999) and other lending fees (£25).

    The overall cost for comparison is 4.4% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    Up to 60% Up to 60% 3.39% 3.39% 4.3% APRC 4.3% APRC 5.24% £49 Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (5% before 2nd March 2021, 4% before 2nd March 2022, 3% before 2nd March 2023, 2% before 2nd March 2024 and 1% before 2nd March 2025 of the amount repaid) if you repay all or part of your mortgage before 2nd March 2025
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this fixed rate product until 1st March 2025 at 3.39% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 61 monthly payments of £742.50 and 143 monthly payments of £821.47.

    The total amount payable would be £162,987 made up of the loan amount plus interest (£47,755), arrangement fee (£49) and other lending fees (£25).

    The overall cost for comparison is 4.3% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    Up to 75% Up to 75% 4.04% 4.04% 4.8% APRC 4.8% APRC 5.24% £999 Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (5% before 2nd March 2021, 4% before 2nd March 2022, 3% before 2nd March 2023, 2% before 2nd March 2024 and 1% before 2nd March 2025 of the amount repaid) if you repay all or part of your mortgage before 2nd March 2025
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this fixed rate product until 1st March 2025 at 4.04% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 61 monthly payments of £780.26 and 143 monthly payments of £832.65.

    The total amount payable would be £167,839 made up of the loan amount plus interest (£51,658), arrangement fee (£999) and other lending fees (£25).

    The overall cost for comparison is 4.8% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    Up to 75% Up to 75% 4.19% 4.19% 4.8% APRC 4.8% APRC 5.24% £49 Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (5% before 2nd March 2021, 4% before 2nd March 2022, 3% before 2nd March 2023, 2% before 2nd March 2024 and 1% before 2nd March 2025 of the amount repaid) if you repay all or part of your mortgage before 2nd March 2025
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this fixed rate product until 1st March 2025 at 4.19% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 61 monthly payments of £789.13 and 143 monthly payments of £835.19.

    The total amount payable would be £167,793 made up of the loan amount plus interest (£52,562), arrangement fee (£49) and other lending fees (£25).

    The overall cost for comparison is 4.8% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    2 YEAR FIXED RATE

    Your interest rate is fixed at the rate shown until 1st March 2022, followed by our Commercial Variable Base Rate (CVBR), currently 5.24%, until the end of the mortgage.

    Loan To Value Initial interest rate for 2 years Overall cost for comparison Follow on rate Fee
    Up to 60% Up to 60% 2.69% 2.69% 4.8% APRC 4.8% APRC 5.24% £999 Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (2% before 2nd March 2021 and 1% before 2nd March 2022 of the amount repaid) if you repay all or part of your mortgage before 2nd March 2022
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this fixed rate product until 1st March 2022 at 2.69% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 25 monthly payments of £703.08 and 179 monthly payments of £835.00.

    The total amount payable would be £168,216 made up of the loan amount plus interest (£52,035), arrangement fee (£999) and other lending fees (£25).

    The overall cost for comparison is 4.8% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    Up to 60% Up to 60% 3.04% 3.04% 4.8% APRC 4.8% APRC 5.24% £49 Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (2% before 2nd March 2021 and 1% before 2nd March 2022 of the amount repaid) if you repay all or part of your mortgage before 2nd March 2022
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this fixed rate product until 1st March 2022 at 3.04% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 25 monthly payments of £722.63 and 179 monthly payments of £837.57.

    The total amount payable would be £168,215 made up of the loan amount plus interest (£52,983), arrangement fee (£49) and other lending fees (£25).

    The overall cost for comparison is 4.8% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    Up to 75% Up to 75% 3.49% 3.49% 5.0% APRC 5.0% APRC 5.24% £999 Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (2% before 2nd March 2021 and 1% before 2nd March 2022 of the amount repaid) if you repay all or part of your mortgage before 2nd March 2022
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this fixed rate product until 1st March 2022 at 3.49% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 25 monthly payments of £748.24 and 179 monthly payments of £840.80.

    The total amount payable would be £170,383 made up of the loan amount plus interest (£54,202), arrangement fee (£999) and other lending fees (£25).

    The overall cost for comparison is 5.0% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    Up to 75% Up to 75% 3.84% 3.84% 5.0% APRC 5.0% APRC 5.24% £49 Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (2% before 2nd March 2021 and 1% before 2nd March 2022 of the amount repaid) if you repay all or part of your mortgage before 2nd March 2022
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this fixed rate product until 1st March 2022 at 3.84% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 25 monthly payments of £768.52 and 179 monthly payments of £843.26.

    The total amount payable would be £170,381 made up of the loan amount plus interest (£55,149), arrangement fee (£49) and other lending fees (£25).

    The overall cost for comparison is 5.0% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    2 YEAR DISCOUNT VARIABLE RATE

    Your interest rate tracks our Commercial Variable Base Rate (CVBR), currently 5.24%, less the discount shown for the first 2 years, followed by our CVBR until the end of the mortgage.

    Loan To Value Initial interest rate for 2 years Overall cost for comparison Discount from CVBR Follow on rate Fee
    Up to 60% Up to 60% 2.74% 2.74% 4.9% APRC 4.9% APRC 2.50% 5.24% £999 Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (1.00% before the end of year 1 and 0.50% before the end of year 2 of the amount repaid) if you repay all or part of your mortgage before the end of the deal
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this variable rate product for 2 years at 2.74% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 24 monthly payments of £705.85 and 180 monthly payments of £836.22.

    The total amount payable would be £168,634 made up of the loan amount plus interest (£52,453), arrangement fee (£999) and other lending fees (£25).

    The overall cost for comparison is 4.9% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    Up to 60% Up to 60% 3.09% 3.09% 4.8% APRC 4.8% APRC 2.15% 5.24% No fee Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (1.00% before the end of year 1 and 0.50% before the end of year 2 of the amount repaid) if you repay all or part of your mortgage before the end of the deal
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this variable rate product for 2 years at 3.09% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 24 monthly payments of £725.45 and 180 monthly payments of £838.70.

    The total amount payable would be £168,552 made up of the loan amount plus interest (£53,370) and other lending fees (£25).

    The overall cost for comparison is 4.8% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    Up to 75% Up to 75% 3.54% 3.54% 5.1% APRC 5.1% APRC 1.70% 5.24% £999 Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (1.00% before the end of year 1 and 0.50% before the end of year 2 of the amount repaid) if you repay all or part of your mortgage before the end of the deal
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this variable rate product for 2 years at 3.54% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 24 monthly payments of £751.12 and 180 monthly payments of £841.81.

    The total amount payable would be £170,727 made up of the loan amount plus interest (£54,545), arrangement fee (£999) and other lending fees (£25).

    The overall cost for comparison is 5.1% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    Up to 75% Up to 75% 3.89% 3.89% 5.0% APRC 5.0% APRC 1.35% 5.24% No fee Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (1.00% before the end of year 1 and 0.50% before the end of year 2 of the amount repaid) if you repay all or part of your mortgage before the end of the deal
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this variable rate product for 2 years at 3.89% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 24 monthly payments of £771.45 and 180 monthly payments of £844.19.

    The total amount payable would be £170,644 made up of the loan amount plus interest (£55,462) and other lending fees (£25).

    The overall cost for comparison is 5.0% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    For loans above £750k, please call us on 01228 403 141 to discuss the products that are available to you.

    Do you qualify for a non-standard product? View our lending criteria

    5 YEAR FIXED RATE

    Your interest rate is fixed at the rate shown until 1st March 2025, followed by our Commercial Variable Base Rate (CVBR), currently 5.24%, until the end of the mortgage.

    Loan To Value Initial interest rate for 5 years Overall cost for comparison Follow on rate Fee
    Up to 60% Up to 60% 4.09% 4.09% 4.9% APRC 4.9% APRC 5.24% 1% (of mortgage amount) Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (5% before 2nd March 2021, 4% before 2nd March 2022, 3% before 2nd March 2023, 2% before 2nd March 2024 and 1% before 2nd March 2025 of the amount repaid) if you repay all or part of your mortgage before 2nd March 2025
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this fixed rate product until 1st March 2025 at 4.09% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 61 monthly payments of £783.21 and 143 monthly payments of £833.50.

    The total amount payable would be £168,291 made up of the loan amount plus interest (£51,959), arrangement fee (1% of mortgage amount) and other lending fees (£25).

    The overall cost for comparison is 4.9% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    Up to 75% Up to 75% 4.89% 4.89% 5.3% APRC 5.3% APRC 5.24% 1% (of mortgage amount) Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (5% before 2nd March 2021, 4% before 2nd March 2022, 3% before 2nd March 2023, 2% before 2nd March 2024 and 1% before 2nd March 2025 of the amount repaid) if you repay all or part of your mortgage before 2nd March 2025
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this fixed rate product until 1st March 2025 at 4.89% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 61 monthly payments of £831.27 and 143 monthly payments of £846.86.

    The total amount payable would be £173,134 made up of the loan amount plus interest (£56,801), arrangement fee (1% of mortgage amount) and other lending fees (£25).

    The overall cost for comparison is 5.3% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    2 YEAR FIXED RATE

    Your interest rate is fixed at the rate shown until 1st March 2022, followed by our Commercial Variable Base Rate (CVBR), currently 5.24%, until the end of the mortgage.

    Loan To Value Initial interest rate for 2 years Overall cost for comparison Follow on rate Fee
    Up to 60% Up to 60% 3.54% 3.54% 5.1% APRC 5.1% APRC 5.24% 1% (of mortgage amount) Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (2% before 2nd March 2021 and 1% before 2nd March 2022 of the amount repaid) if you repay all or part of your mortgage before 2nd March 2022
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this fixed rate product until 1st March 2022 at 3.54% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 25 monthly payments of £751.12 and 179 monthly payments of £841.15.

    The total amount payable would be £170,669 made up of the loan amount plus interest (£54,337), arrangement fee (1% of mortgage amount) and other lending fees (£25).

    The overall cost for comparison is 5.1% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    Up to 75% Up to 75% 4.34% 4.34% 5.3% APRC 5.3% APRC 5.24% 1% (of mortgage amount) Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (2% before 2nd March 2021 and 1% before 2nd March 2022 of the amount repaid) if you repay all or part of your mortgage before 2nd March 2022
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this fixed rate product until 1st March 2022 at 4.34% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 25 monthly payments of £798.05 and 179 monthly payments of £846.68.

    The total amount payable would be £172,832 made up of the loan amount plus interest (£56,500), arrangement fee (1% of mortgage amount) and other lending fees (£25).

    The overall cost for comparison is 5.3% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    2 YEAR DISCOUNT VARIABLE RATE

    Your interest rate tracks our Commercial Variable Base Rate (CVBR), currently 5.24%, less the discount shown for the first 2 years, followed by our CVBR until the end of the mortgage.

    Loan To Value Initial interest rate for 2 years Overall cost for comparison Discount from CVBR Follow on rate Fee
    Up to 60% Up to 60% 3.59% 3.59% 5.1% APRC 5.1% APRC 1.65% 5.24% 1% (of mortgage amount) Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (1.00% before the end of year 1 and 0.50% before the end of year 2 of the amount repaid) if you repay all or part of your mortgage before the end of the deal
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this variable rate product for 2 years at 3.59% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 24 monthly payments of £754.00 and 180 monthly payments of £842.16.

    The total amount payable would be £171,010 made up of the loan amount plus interest (£54,678), arrangement fee (1% of mortgage amount) and other lending fees (£25).

    The overall cost for comparison is 5.1% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    Up to 75% Up to 75% 4.39% 4.39% 5.3% APRC 5.3% APRC 0.85% 5.24% 1% (of mortgage amount) Find out
    • Can repay lump sums without any early repayment charge (up to 10% per annum each financial year (1 April - 31 March) of the outstanding balance as at 1 April each year) - full details will be found in your Mortgage Illustration
    • Will have to pay an early-repayment charge (1.00% before the end of year 1 and 0.50% before the end of year 2 of the amount repaid) if you repay all or part of your mortgage before the end of the deal
    Representative Example:

    A mortgage of £115,007 payable over 17 years initially on this variable rate product for 2 years at 4.39% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 24 monthly payments of £801.04 and 180 monthly payments of £847.49.

    The total amount payable would be £173,098 made up of the loan amount plus interest (£56,766), arrangement fee (1% of mortgage amount) and other lending fees (£25).

    The overall cost for comparison is 5.3% APRC representative.

    What is a Representative Example?

    Representative Examples include the costs associated with a typical mortgage from The Cumberland. They do not take into account the information your have input into this mortgage calculator and are therefore not specific to your circumstances. For a Mortgage Illustration, please contact us directly.

    For loans above £750k, please call us on 01228 403 141 to discuss the products that are available to you.

    Key Information

    • Our Holiday Let Mortgage criteria

      In all cases, the following criteria apply:

      Lending area

      We lend throughout mainland UK and the isles of Anglesey, Arran, Mull, Skye, Lewis, Harris and Wight

      Maximum LTV

      We can lend up to 75% of the property value

      Loan size

      The minimum loan size is £75,000

      The minimum property value must be £150,000

      We will consider up to 75% LTV for loans up to £1.5m and up to 60% LTV on loans between £1,500,001 and £2m.

      Mortgage products displayed above apply to loans of up to £750k. For loans of over £750k, please call our team on 01228 403 135 to discuss the products available to you.

      Term

      Maximum mortgage term is 25 years

      Property

      Leasehold properties should have a minimum of 85 years left on the lease at the start of the mortgage and 50 years on maturity

      Our product rates for are available for both new and established holiday let properties

      Single or multiple unit properties acceptable

      Properties which are temporary or moveable are not eligible

      Rental coverage

      To meet our criteria for rental coverage, annual net rental income must:

      • For standard variable rate products be a minimum of 125% of the annual mortgage interest at an interest rate of 6.25%
      • For 5-year fixed rate products be a minimum of 125% of the annual mortgage interest at the product fixed rate
    • Standard Products

      To qualify for standard products, a case must meet ALL criteria, otherwise non-standard products apply.

      • Annual personal income above £20,000
      • Applicant is an individual or partnership
      • Loan amount above £75,000 1
      • Applicant is a UK resident
      • No occupancy restrictions apply
      • Proposed holiday letting is based upon proven figures or projected figures
      • Portfolio landlords and non-portfolio landlords
      • Some or all of the funds requested are to be used to raise capital for the improvement / renovation / refurbishment of the property or to replenish funds used for those purposes
      • Some or all of the funds are used to purchase or renovate another property
      • Applicant owns a residential property
      • The HMLR title includes just a single letting unit
      1 Maximum exposure on standard products £2m. Maximum aggregate exposure £5m (eg £2m standard; £3m non-standard).
    • Non-Standard Products

      In the following circumstances, non-standard products apply:

      • Annual income below £20,000
      • Applicant is a Company, an LLP or a Trust 1
      • Applicant is not a UK resident 2
      • Occupancy restrictions apply
      • Top slicing of background income required to meet shortfall at stressed rate (or pay rate if 5 year fixed) 3
      • Some or all of the funds requested are to raise capital for injection into another business venture (including but not exclusively property development)
      • Funds to be used to consolidate debt of £25k or more
      • Applicant does not own a residential property
      • The HMLR title includes several letting units
      • The property sits above a commercial property (eg a flat above a shop)
      1 Beneficial owners of Ltd Companies to be EU Nationals resident in the UK or UK ex-pats. Companies must be incorporated in the UK.
      2 Borrowers to be EU Nationals resident in the UK or UK ex-pats.
      3Viability calculation based on annual rental income of property after 20% deducted for letting agents fees; Loans must meet a stress hurdle of 125% interest cover at an interest rate of 6.25% where the product rate is variable (e.g. a loan of £100k must have nett income of £7,813 to meet a stress rate of 6.25%). 5 year fixed stressed at 125% at pay rate. HL income must be confirmed in writing by a reputable letting agent or from actual trading figures from current property owners.

      Background income can be used to top slice where the stress rate hurdle is not met and the borrower must demonstrate the ability to service the debt from background income or other sources.
    • How to apply

      Arrange a call

      1) Use our appointment booking system to schedule a call with our Business team.

      2) We'll advise you on the best mortgage options available to you.

      3) We'll then send you an application form. Complete and return the form and we'll do the rest.

    Holiday Let FAQs

    • Can I let my property on Airbnb?

      There are various laws and regulations in the UK that may determine whether or not you are able to offer your property for short term let on Airbnb.

      1. Leasehold properties

      If you own, or are looking to buy a leasehold property, check the terms of the lease agreement carefully. Some homes are noted as for ‘private residence only’, and in these cases, you can’t rent out your property short term and we won’t be able to provide a holiday let mortgage. Leasehold is a particularly common ownership structure for flats, but can apply to houses too.

      2. Regional regulations

      Some cities and regions have particular rules around short term letting. It’s important to do your research and find out if the destination you have in mind is subject to any additional rules and regulations.

      3. More information

      Check out the Airbnb website for information about regional regulations, plus some more considerations for becoming an Airbnb host.

    • Is a holiday let for me?

      Property investment can be a very effective way of generating income if managed correctly; however, it doesn’t come without its risks. If you plan to buy your property with a mortgage and you're relying on the rental income to make your mortgage repayments, you must consider how you will keep up the repayments if you don't receive enough rental income.

      You also need to consider whether you can afford the cost of any major repairs as well as ongoing minor repairs and maintenance.

      We would strongly recommend that you take professional advice before entering into any property related transaction.

      You may also wish to contact a conveyancer (for advice on any legal implications of owning a holiday let) and an accountant (for advice on tax implications).

    • What is involved in buying a holiday home to let?

      Buying a holiday let property is very different from buying your own home.

      Here are some things to think about before you start your search for a property:

      Do your research
      Research the market, with the help of estate and lettings agents, who will be able to advise on demand and any other issues in the area you are thinking of buying in. The location of a holiday let property will impact its rental value. You also need to consider the travelling distance from your home if you're planning to personally run and maintain your holiday let.

      Ask an expert
      Speak to an experienced holiday letting agency and make sure you have a professional opinion of the level of income and potential occupancy levels you can expect from the property and the area. Ask about what standard of decoration and furnishings you should offer to attract the level of rent and occupancy that you need. If you decide to register with a holiday letting agency, you should consider what services they will provide you with and the cost to you.

      Understand your finances
      Keep in mind why you are buying the property – whether you're in the market for capital gain when you sell or simply monthly rental income. This will help you decide what to buy and where, and what kind of mortgage you need. You will need to consider your pricing – if you charge too much the property may be empty during the main holiday season, if you charge too little you may be fully booked but without enough profit to cover your mortgage and any other costs.

      Buy carefully
      Make sure you buy a property which allows for sufficient profit margin. If you go for a ‘bargain’ property which requires a lot of work, make sure that you have the time and finances to undertake and complete the project. Paying more for a property which is in better condition and can be marketed immediately can be a wiser move.

      Check for safety
      By law you must make sure that the property you're letting complies with various safety regulations, such as furniture and furnishings fire safety, gas safety, electrical equipment safety and that it contains a smoke detector. You'll also need certificates to prove these regulations have been met.

      Be aware of new and updated regulations
      Failure to comply with the law can result in serious consequences. The best way to make sure you are kept up to date is to use a holiday letting agency which can make you aware of them, while also ensuring you comply.

      Tax implications
      A Holiday Let investment attracts several different taxes. Aside from Stamp Duty Land Tax, which you have to pay when you purchase any Holiday Let property, you may also have to pay Income Tax on the rent you receive and Capital Gains Tax when you sell the property. Rental income must be declared on a Self Assessment tax return. However, you can deduct costs such as mortgage interest and letting agency fees from the rent you receive first. And like anything else you own, a Holiday Let property will form part of your estate for Inheritance Tax purposes. There may also be tax advantages relating to any capital you spend in kitting out your property. We recommend that you speak to an accountant for more in-depth information.

      Marketing your Holiday Let
      You can choose to market the property yourself, or use a holiday letting agency. It is important to make sure your property is visible to potential customers searching online and that they can see anything which sets you apart from your competitors.

    • How do I apply for a holiday let mortgage?

      You may have found a property before you read this or you may not have started looking. No matter what stage you’re at you should speak with us before you commit yourself to a property, to make sure you can afford it and can raise the necessary finance. Use our appointment booking system to schedule a call with our team.

      To help us assess each application we may ask for some or all of the following:

      • Background details of the applicants in the form of a C.V.
      • Details of present/anticipated income and expenditure. We may request this to form part of a business plan incorporating a cashflow forecast and trading projections.
      • Details of existing assets and liabilities.
      • Recent certified/audited accounts.
      • Recent statements on your bank/building society accounts.

      The next step will be to fill in the mortgage application form. Once the mortgage application form has been completed, we will ask you to pay the mortgage valuation fee so that we can send a professional valuer to report on the property to make sure we can lend what you need.

    More FAQs→

    Holiday Let Inspiration

    We've worked with some amazing people, helping them live out their dreams and ambitions of setting up, growing, or diversifying their holiday let investments. Our customers Richard and Debbie transformed a dilapidated farmhouse into a luxury holiday let - check out their story below.

    Hospitality Business Guide Image
    Hospitality Business Guide Download
    Our guide is packed full of information from industry experts and our knowledgeable partners. We discuss all sorts - from tax benefits for holiday let properties to the advantages of being pet-friendly.
    Customer stories Image
    Customer stories Read stories
    We love hearing about our customers' journeys and achievements, and we think you will too. Whether it's winning tourism awards, building sustainable futures, or setting out in a completely new direction, each story proves that it is possible to turn your dream into reality.

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    Your mortgage is secured on your property. Think carefully before securing other debts against your property. Your property may be repossessed if you do not keep up repayments on your mortgage.