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
Below, we’ve outlined the types of applications we can consider from you, and the products that apply to each.
| Core product | Specialist product | Specialist+ product |
| Sole Trader & Partnerships | Limited Company Special Purpose Vehicle or Limited Liability Partnership Special Purpose Vehicle without personal guarantee | Trading Business (Entity type sole trader, partnerships, Limited Company, Limited Liability Partnership) |
| Limited Company Special Purpose Vehicle or Limited Liability Partnership Special Purpose Vehicle with personal guarantee | Security address above Commercial property | Complex Security (i.e. layered structures, cross company guarantees) |
| 3 or less mortgaged buy to let and holiday let properties in portfolio | 4-8 mortgaged buy to let or holiday let properties in portfolio | 9 or more mortgaged buy to let or holiday let properties in portfolio |
| HM Land registry includes more than one letting unit on the title up to 3 letting units Max. | Real Estate property developers |
Maximum of 20 properties in portfolio (total number of properties includes Buy to Let/Holiday Let/Commercial investments).
When determining the total number of properties, include mortgages where the borrowing is structured through a limited company entity if the customer has provided a personal guarantee of 50% or more of the loan amount or the loan is in personal names.
Where the borrowing is through a limited company and no guarantee has been provided or the guarantee is less than 50%, the mortgage should not be included in the property count.
If your application falls outside the above criteria, our Commercial Team may still be able to assist and can consider more non-standard cases such as:
Please note that all such applications are subject to commercial pricing and criteria.
Please contact our Commercial team who may be able to help.
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.
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.
If you are a new Cumberland Customer and looking to purchase a Holiday Let property you can view our range of products here.
If you are a new Cumberland customer and are looking to remortgage your Holiday Let property with us, you can view our range of products here.
If you are an existing Cumberland Holiday Let customer and your existing deal is coming to an end you can view our range of products available for existing customers.
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 (or Land & Buildings Transaction Tax in Scotland), 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 letting agency fees from the rent you receive first. Like anything else you own, a Holiday Let property will form part of your estate for Inheritance Tax purposes. 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.
Subject to your property meeting requirements to let on a short-term basis, we can consider properties let on Airbnb or similar sites.
There are various laws and regulations in the UK that may determine whether you are able to offer your property for short term let. We suggest that you look into government guidance on this topic, and you can find out more about what qualifies as a holiday let here.
However, the best thing to do is contact us, to do this you will have to fill in a quick eligibility form to be directed to the right place.
Yes, in some circumstances depending on the restriction. Contact a member of our commercial team to discuss.
The Scottish Government has introduced a licensing regime for short-term lets in Scotland. This will mean that local authorities will have established schemes for short-term letting licensing. You can find out more about the change in legislation on the following websites:
You could commit a criminal offence if you do not comply, so it is important to seek legal advice to check whether the legislation affects you or your property.
Legislation for England and Wales is being implemented on a phased basis, please refer to your local council if you require guidance.
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.
The Cumberland Building Society is making its biggest-ever charity donation, committing £500,000 over two years to help combat food poverty.