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.
Make it happen with a mortgage from The Cumberland
Our Intermediary team can consider applications from in the following circumstances:
*If your application falls outside the above criteria, it may be subject to commercial pricing and criteria. Please contact our Commercial team who may be able to help.
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. View our lending criteria and product range here to find out more.
Help and Support
External factors continue to be a cause for concern for many business owners. If you are an existing business customer and worried about your mortgage contact your Relationship Manager, or visit our financial difficulties page.
In all cases, the following criteria apply:
| Applicant type |
We lend to individual applicants or limited company SPV. Applicants must reside in the UK and also have indefinite right to remain in the UK |
| Lending area |
We lend throughout mainland UK and the isles of Anglesey, Arran, Mull, Skye, Lewis, Harris and Wight |
| Applicant |
Minimum sole/joint income £25,000 Where earned income is required to meet affordability for the loan, a minimum of £50,000 sole/joint income is required-additional criteria applies see criteria guides Maximum of 4 joint applicants |
| Maximum LTV |
We can lend up to 75% of the property value |
| Loan size |
The minimum loan size is £75,000 |
| Term |
Maximum mortgage term is 30 years |
| Property |
The minimum property value must be £150,000 Properties which are temporary, or moveable are not eligible |
| Rental coverage |
To meet our criteria for rental coverage, annual net rental income
|
| Shareholder age |
We are unable to provide lending if any of the shareholders are under 18 years old |
In the following circumstances, Specialist products apply:
Our operating area is:
Your interest rate tracks our Commercial Variable Base Rate (CVBR), currently 9.74%, less the discount shown for the first 2 years, followed by our CVBR until the end of the mortgage. Please check if you are eligible for Core or Specialist products here.
| Loan To Value | Loan Amount | Initial interest rate for 2 years | Overall cost for comparison | Discount from CVBR | Follow on rate | Fee | Type |
|---|---|---|---|---|---|---|---|
| £75k – £2m | 3.51% | 9.74% | £999 | Core | |||
Representative Example: A mortgage of £127,500 payable over 24 years initially on this variable rate product for 2 years at 6.23% and then on our Commercial Variable Base Rate (CVBR), currently 9.74% for the remaining term of the mortgage, would require 24 monthly payments of £854.19 and 264 monthly payments of £1,128.81. The total amount payable would be £319,635 made up of the loan amount plus interest (£191,006), arrangement fee (£999), other lending fees (£20) and a repayment fee (£110). The overall cost for comparison is 9.4% 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. Book An Appointment | |||||||
| £75k – £2m | 3.16% | 9.74% | £999 | Specialist | |||
Representative Example: A mortgage of £127,500 payable over 24 years initially on this variable rate product for 2 years at 6.58% and then on our Commercial Variable Base Rate (CVBR), currently 9.74% for the remaining term of the mortgage, would require 24 monthly payments of £881.66 and 264 monthly payments of £1,130.96. The total amount payable would be £320,862 made up of the loan amount plus interest (£192,233), arrangement fee (£999), other lending fees (£20) and a repayment fee (£110). The overall cost for comparison is 9.5% 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. Book An Appointment | |||||||
Your interest rate tracks our Commercial Variable Base Rate (CVBR), currently 9.74%, less the discount shown for the first 2 years, followed by our CVBR until the end of the mortgage. Please check if you are eligible for Core or Specialist products here.
| Loan To Value | Loan Amount | Initial interest rate for 2 years | Overall cost for comparison | Discount from CVBR | Follow on rate | Fee | Type |
|---|---|---|---|---|---|---|---|
| £75k – £2m | 3.51% | 9.74% | £999 | Core | |||
Representative Example: A mortgage of £127,500 payable over 24 years initially on this variable rate product for 2 years at 6.23% and then on our Commercial Variable Base Rate (CVBR), currently 9.74% for the remaining term of the mortgage, would require 24 monthly payments of £854.19 and 264 monthly payments of £1,128.81. The total amount payable would be £319,635 made up of the loan amount plus interest (£191,006), arrangement fee (£999), other lending fees (£20) and a repayment fee (£110). The overall cost for comparison is 9.4% 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. Book An Appointment | |||||||
| £75k – £2m | 3.16% | 9.74% | £999 | Specialist | |||
Representative Example: A mortgage of £127,500 payable over 24 years initially on this variable rate product for 2 years at 6.58% and then on our Commercial Variable Base Rate (CVBR), currently 9.74% for the remaining term of the mortgage, would require 24 monthly payments of £881.66 and 264 monthly payments of £1,130.96. The total amount payable would be £320,862 made up of the loan amount plus interest (£192,233), arrangement fee (£999), other lending fees (£20) and a repayment fee (£110). The overall cost for comparison is 9.5% 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. Book An Appointment | |||||||
Your interest rate is fixed at the rate shown until 1st January 2026, followed by our Commercial Variable Base Rate (CVBR), currently 9.74%, until the end of the mortgage. Please check if you are eligible for Core or Specialist products here.
| Loan To Value | Loan Amount | Initial interest rate for 2 years | Overall cost for comparison | Follow on rate | Fee | Type |
|---|---|---|---|---|---|---|
| £75k – £2m | 9.74% | £999 | Core | |||
Representative Example: A mortgage of £127,500 payable over 24 years initially on this fixed rate product until 1st January 2026 at 6.53% and then on our Commercial Variable Base Rate (CVBR), currently 9.74% for the remaining term of the mortgage, would require 24 monthly payments of £877.71 and 264 monthly payments of £1,130.66. The total amount payable would be £320,688 made up of the loan amount plus interest (£192,059), arrangement fee (£999), other lending fees (£20) and a repayment fee (£110). The overall cost for comparison is 9.5% 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. Book An Appointment | ||||||
| £75k – £2m | 9.74% | £999 | Specialist | |||
Representative Example: A mortgage of £127,500 payable over 24 years initially on this fixed rate product until 1st January 2026 at 6.88% and then on our Commercial Variable Base Rate (CVBR), currently 9.74% for the remaining term of the mortgage, would require 24 monthly payments of £905.52 and 264 monthly payments of £1,132.73. The total amount payable would be £321,902 made up of the loan amount plus interest (£193,273), arrangement fee (£999), other lending fees (£20) and a repayment fee (£110). The overall cost for comparison is 9.6% 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. Book An Appointment | ||||||
Your interest rate is fixed at the rate shown until 1st January 2026, followed by our Commercial Variable Base Rate (CVBR), currently 9.74%, until the end of the mortgage. Please check if you are eligible for Core or Specialist products here.
| Loan To Value | Loan Amount | Initial interest rate for 2 years | Overall cost for comparison | Follow on rate | Fee | Type |
|---|---|---|---|---|---|---|
| £75k – £2m | 9.74% | £999 | Core | |||
Representative Example: A mortgage of £127,500 payable over 24 years initially on this fixed rate product until 1st January 2026 at 6.53% and then on our Commercial Variable Base Rate (CVBR), currently 9.74% for the remaining term of the mortgage, would require 24 monthly payments of £877.71 and 264 monthly payments of £1,130.66. The total amount payable would be £320,688 made up of the loan amount plus interest (£192,059), arrangement fee (£999), other lending fees (£20) and a repayment fee (£110). The overall cost for comparison is 9.5% 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. Book An Appointment | ||||||
| £75k – £2m | 9.74% | £999 | Specialist | |||
Representative Example: A mortgage of £127,500 payable over 24 years initially on this fixed rate product until 1st January 2026 at 6.88% and then on our Commercial Variable Base Rate (CVBR), currently 9.74% for the remaining term of the mortgage, would require 24 monthly payments of £905.52 and 264 monthly payments of £1,132.73. The total amount payable would be £321,902 made up of the loan amount plus interest (£193,273), arrangement fee (£999), other lending fees (£20) and a repayment fee (£110). The overall cost for comparison is 9.6% 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. Book An Appointment | ||||||
Your interest rate is fixed at the rate shown until 1st January 2029, followed by our Commercial Variable Base Rate (CVBR), currently 9.74%, until the end of the mortgage. Please check if you are eligible for Core or Specialist products here.
| Loan To Value | Loan Amount | Initial interest rate for 5 years | Overall cost for comparison | Follow on rate | Fee | Type |
|---|---|---|---|---|---|---|
| £75k – £2m | 9.74% | £999 | Core | |||
Representative Example: A mortgage of £127,500 payable over 24 years initially on this fixed rate product until 1st January 2029 at 6.38% and then on our Commercial Variable Base Rate (CVBR), currently 9.74% for the remaining term of the mortgage, would require 60 monthly payments of £865.91 and 228 monthly payments of £1,101.91. The total amount payable would be £304,319 made up of the loan amount plus interest (£175,690), arrangement fee (£999), other lending fees (£20) and a repayment fee (£110). The overall cost for comparison is 8.6% 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. Book An Appointment | ||||||
| £75k – £2m | 9.74% | £999 | Specialist | |||
Representative Example: A mortgage of £127,500 payable over 24 years initially on this fixed rate product until 1st January 2029 at 6.73% and then on our Commercial Variable Base Rate (CVBR), currently 9.74% for the remaining term of the mortgage, would require 60 monthly payments of £893.55 and 228 monthly payments of £1,107.30. The total amount payable would be £307,206 made up of the loan amount plus interest (£178,577), arrangement fee (£999), other lending fees (£20) and a repayment fee (£110). The overall cost for comparison is 8.7% 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. Book An Appointment | ||||||
Your interest rate is fixed at the rate shown until 1st January 2029, followed by our Commercial Variable Base Rate (CVBR), currently 9.74%, until the end of the mortgage. Please check if you are eligible for Core or Specialist products here.
| Loan To Value | Loan Amount | Initial interest rate for 5 years | Overall cost for comparison | Follow on rate | Fee | Type |
|---|---|---|---|---|---|---|
| £75k – £2m | 9.74% | £999 | Core | |||
Representative Example: A mortgage of £127,500 payable over 24 years initially on this fixed rate product until 1st January 2029 at 6.38% and then on our Commercial Variable Base Rate (CVBR), currently 9.74% for the remaining term of the mortgage, would require 60 monthly payments of £865.91 and 228 monthly payments of £1,101.91. The total amount payable would be £304,319 made up of the loan amount plus interest (£175,690), arrangement fee (£999), other lending fees (£20) and a repayment fee (£110). The overall cost for comparison is 8.6% 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. Book An Appointment | ||||||
| £75k – £2m | 9.74% | £999 | Specialist | |||
Representative Example: A mortgage of £127,500 payable over 24 years initially on this fixed rate product until 1st January 2029 at 6.73% and then on our Commercial Variable Base Rate (CVBR), currently 9.74% for the remaining term of the mortgage, would require 60 monthly payments of £893.55 and 228 monthly payments of £1,107.30. The total amount payable would be £307,206 made up of the loan amount plus interest (£178,577), arrangement fee (£999), other lending fees (£20) and a repayment fee (£110). The overall cost for comparison is 8.7% 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. Book An Appointment | ||||||
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.
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.
The Scottish Government has introduced a licensing regime for short-term lets in Scotland. Under the scheme, local authorities will be required to establish a short-term let licensing scheme by 1 October 2022.
You can find out more about the change in legislation on the following websites:
You could commit a criminal offence if you don’t comply, so it’s important to seek legal advice to check whether the legislation affects you or your property.
We do not lend to applicants who reside outside the UK. If you are existing customer and reside outside the UK and wish to discuss your mortgage, please give us a call on 01228 403 312.
A hardy band of well-meaning souls from the Commercial and Intermediary teams at The Cumberland spent their Halloween volunteering rather than chasing ghosts.
As part of our series exploring opportunities for hospitality business owners to expand, we spoke to Julian Troup, Head of UK Hotels at Colliers real estate agents, about the current trends, challenges and opportunities in the hospitality sector.
The Cumberland has teamed up with other experts across the hospitality lending space to share advice for business owners on how they can safely expand their hospitality business, despite a challenging economic climate.