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
Welcome to your new holiday let
Make it happen with a mortgage from The Cumberland:
Do you already run a holiday let business? We can help you remortgage if you wish to refinance your property. We will also finance multiple holiday let properties as your business grows.
At The Cumberland, we're committed to working with you to ensure you get the right mortgage to suit your individual circumstances, which is why we're pleased to offer range of standard and non-standard mortgage products. View our lending criteria to find out which product applies to you.
Your interest rate is fixed at the rate shown until 1st September 2024, followed by our Commercial Variable Base Rate (CVBR), currently 5.24%, until the end of the mortgage.
Loan To Value | Loan Amount | Initial interest rate for 2 years | Overall cost for comparison | Follow on rate | Fee |
---|---|---|---|---|---|
£75k – £2m | 5.24% | £999 | |||
Representative Example:
A mortgage of £91,602 payable over 23 years initially on this fixed rate product until 1st September 2024 at 3.44% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 27 monthly payments of £480.78 and 249 monthly payments of £563.86. The total amount payable would be £154,511 made up of the loan amount plus interest (£61,780), arrangement fee (£999) and other lending fees (£20). 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. |
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£75k – £2m | 5.24% | £999 | |||
Representative Example:
A mortgage of £91,602 payable over 23 years initially on this fixed rate product until 1st September 2024 at 3.84% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 27 monthly payments of £500.25 and 249 monthly payments of £565.74. The total amount payable would be £155,505 made up of the loan amount plus interest (£62,774), arrangement fee (£999) and other lending fees (£20). The overall cost for comparison is 5.2% 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. |
Your interest rate is fixed at the rate shown until 1st September 2027, followed by our Commercial Variable Base Rate (CVBR), currently 5.24%, until the end of the mortgage.
Loan To Value | Loan Amount | Initial interest rate for 5 years | Overall cost for comparison | Follow on rate | Fee |
---|---|---|---|---|---|
£75k – £2m | 5.24% | £999 | |||
Representative Example:
A mortgage of £91,602 payable over 23 years initially on this fixed rate product until 1st September 2027 at 3.59% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 63 monthly payments of £488.03 and 213 monthly payments of £554.56. The total amount payable would be £149,996 made up of the loan amount plus interest (£57,265), arrangement fee (£999) and other lending fees (£20). The overall cost for comparison is 4.7% 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. |
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£75k – £2m | 5.24% | £999 | |||
Representative Example:
A mortgage of £91,602 payable over 23 years initially on this fixed rate product until 1st September 2027 at 3.99% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 63 monthly payments of £507.67 and 213 monthly payments of £558.92. The total amount payable would be £152,162 made up of the loan amount plus interest (£59,431), arrangement fee (£999) and other lending fees (£20). 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. |
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 | Loan Amount | Initial interest rate for 2 years | Overall cost for comparison | Discount from CVBR | Follow on rate | Fee |
---|---|---|---|---|---|---|
£75k – £2m | 1.60% | 5.24% | £999 | |||
Representative Example:
A mortgage of £91,602 payable over 23 years initially on this variable rate product for 2 years at 3.64% 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 £490.46 and 252 monthly payments of £565.56. The total amount payable would be £155,421 made up of the loan amount plus interest (£62,690), arrangement fee (£999) and other lending fees (£20). The overall cost for comparison is 5.2% 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. |
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£75k – £2m | 1.20% | 5.24% | £999 | |||
Representative Example:
A mortgage of £91,602 payable over 23 years initially on this variable rate product for 2 years at 4.04% 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 £510.15 and 252 monthly payments of £567.19. The total amount payable would be £156,304 made up of the loan amount plus interest (£63,573), arrangement fee (£999) and other lending fees (£20). The overall cost for comparison is 5.2% 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. |
Your interest rate is fixed at the rate shown until 1st September 2024, followed by our Commercial Variable Base Rate (CVBR), currently 5.24%, until the end of the mortgage.
Loan To Value | Loan Amount | Initial interest rate for 2 years | Overall cost for comparison | Follow on rate | Fee |
---|---|---|---|---|---|
£75k – £2m | 5.24% | 1% (of mortgage amount) | |||
Representative Example:
A mortgage of £91,602 payable over 23 years initially on this fixed rate product until 1st September 2024 at 4.29% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 27 monthly payments of £522.68 and 249 monthly payments of £567.78. The total amount payable would be £156,536 made up of the loan amount plus interest (£63,887), arrangement fee (1% of mortgage amount) and other lending fees (£20). 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. |
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£75k – £2m | 5.24% | 1% (of mortgage amount) | |||
Representative Example:
A mortgage of £91,602 payable over 23 years initially on this fixed rate product until 1st September 2024 at 4.69% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 27 monthly payments of £543.06 and 249 monthly payments of £569.53. The total amount payable would be £157,522 made up of the loan amount plus interest (£64,873), arrangement fee (1% of mortgage amount) and other lending fees (£20). The overall cost for comparison is 5.4% 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. |
Your interest rate is fixed at the rate shown until 1st September 2027, followed by our Commercial Variable Base Rate (CVBR), currently 5.24%, until the end of the mortgage.
Loan To Value | Loan Amount | Initial interest rate for 5 years | Overall cost for comparison | Follow on rate | Fee |
---|---|---|---|---|---|
£75k – £2m | 5.24% | 1% (of mortgage amount) | |||
Representative Example:
A mortgage of £91,602 payable over 23 years initially on this fixed rate product until 1st September 2027 at 4.44% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 63 monthly payments of £530.27 and 213 monthly payments of £563.69. The total amount payable would be £154,519 made up of the loan amount plus interest (£61,871), arrangement fee (1% of mortgage amount) and other lending fees (£20). 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. |
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£75k – £2m | 5.24% | 1% (of mortgage amount) | |||
Representative Example:
A mortgage of £91,602 payable over 23 years initially on this fixed rate product until 1st September 2027 at 4.84% and then on our Commercial Variable Base Rate (CVBR), currently 5.24% for the remaining term of the mortgage, would require 63 monthly payments of £550.81 and 213 monthly payments of £567.81. The total amount payable would be £156,691 made up of the loan amount plus interest (£64,042), arrangement fee (1% of mortgage amount) and other lending fees (£20). 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. |
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 | Loan Amount | Initial interest rate for 2 years | Overall cost for comparison | Discount from CVBR | Follow on rate | Fee |
---|---|---|---|---|---|---|
£75k – £2m | 0.75% | 5.24% | 1% (of mortgage amount) | |||
Representative Example:
A mortgage of £91,602 payable over 23 years initially on this variable rate product for 2 years at 4.49% 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 £532.82 and 252 monthly payments of £568.97. The total amount payable would be £157,214 made up of the loan amount plus interest (£64,566), arrangement fee (1% of mortgage amount) and other lending fees (£20). 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. |
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£75k – £2m | 0.35% | 5.24% | 1% (of mortgage amount) | |||
Representative Example:
A mortgage of £91,602 payable over 23 years initially on this variable rate product for 2 years at 4.89% 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 £553.41 and 252 monthly payments of £570.49. The total amount payable would be £158,091 made up of the loan amount plus interest (£65,443), arrangement fee (1% of mortgage amount) and other lending fees (£20). The overall cost for comparison is 5.4% 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. |
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 £100,000 Mortgage products displayed above apply to loans of up to £2m. For loans of over £2m, please get in touch 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 (we assume 80% of the gross figure) must:
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Accessible cash savings | A minimum of £15k* cash savings held after the mortgage has completed should be evidenced.
*A higher balance may be required subject to loan amount. |
To qualify for standard products, a case must meet ALL criteria, otherwise non-standard products apply.
In the following circumstances, non-standard products apply:
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.
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).
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.
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. Please check your eligibility and schedule a call with our team.
To help us assess each application we may ask for some or all of the following:
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.
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