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, 2 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 60% 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

5 YEAR FIXED RATE

Your interest rate is fixed at the rate shown until 1st July 2025, followed by our Commercial Variable Base Rate (CVBR), currently 4.59%, 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%	3.39%	3.39%	4.2% APRC	4.2% APRC	4.59%	£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 July 2021, 4% before 2nd July 2022, 3% before 2nd July 2023, 2% before 2nd July 2024 and 1% before 2nd July 2025 of the amount repaid) if you repay all or part of your mortgage before 2nd July 2025 Representative Example: A mortgage of £93,508 payable over 25 years initially on this fixed rate product until 1st July 2025 at 3.39% and then on our Commercial Variable Base Rate (CVBR), currently 4.59% for the remaining term of the mortgage, would require 60 monthly payments of £462.62 and 240 monthly payments of £513.54. The total amount payable would be £151,231 made up of the loan amount plus interest (£57,499), arrangement fee (£49) and other lending fees (£25). The overall cost for comparison is 4.2% 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.
Up to 60%	Up to 60%	3.24%	3.24%	4.2% APRC	4.2% APRC	4.59%	£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 July 2021, 4% before 2nd July 2022, 3% before 2nd July 2023, 2% before 2nd July 2024 and 1% before 2nd July 2025 of the amount repaid) if you repay all or part of your mortgage before 2nd July 2025 Representative Example: A mortgage of £93,508 payable over 25 years initially on this fixed rate product until 1st July 2025 at 3.24% and then on our Commercial Variable Base Rate (CVBR), currently 4.59% for the remaining term of the mortgage, would require 60 monthly payments of £455.19 and 240 monthly payments of £512.09. The total amount payable would be £151,387 made up of the loan amount plus interest (£56,705), arrangement fee (£999) and other lending fees (£25). The overall cost for comparison is 4.2% 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.

2 YEAR FIXED RATE

Your interest rate is fixed at the rate shown until 1st July 2022, followed by our Commercial Variable Base Rate (CVBR), currently 4.59%, 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%	3.04%	3.04%	4.4% APRC	4.4% APRC	4.59%	£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 July 2021 and 1% before 2nd July 2022 of the amount repaid) if you repay all or part of your mortgage before 2nd July 2022 Representative Example: A mortgage of £93,508 payable over 25 years initially on this fixed rate product until 1st July 2022 at 3.04% and then on our Commercial Variable Base Rate (CVBR), currently 4.59% for the remaining term of the mortgage, would require 24 monthly payments of £445.37 and 276 monthly payments of £518.87. The total amount payable would be £154,121 made up of the loan amount plus interest (£60,389), arrangement fee (£49) 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%	2.69%	2.69%	4.4% APRC	4.4% APRC	4.59%	£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 July 2021 and 1% before 2nd July 2022 of the amount repaid) if you repay all or part of your mortgage before 2nd July 2022 Representative Example: A mortgage of £93,508 payable over 25 years initially on this fixed rate product until 1st July 2022 at 2.69% and then on our Commercial Variable Base Rate (CVBR), currently 4.59% for the remaining term of the mortgage, would require 24 monthly payments of £428.50 and 276 monthly payments of £517.46. The total amount payable would be £154,277 made up of the loan amount plus interest (£59,595), 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.

2 YEAR DISCOUNT VARIABLE RATE

Your interest rate tracks our Commercial Variable Base Rate (CVBR), currently 4.59%, 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%	2.94%	2.94%	4.4% APRC	4.4% APRC	1.65%	4.59%	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 £93,508 payable over 25 years initially on this variable rate product for 2 years at 2.94% and then on our Commercial Variable Base Rate (CVBR), currently 4.59% for the remaining term of the mortgage, would require 24 monthly payments of £440.51 and 276 monthly payments of £518.47. The total amount payable would be £153,845 made up of the loan amount plus interest (£60,162) 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%	2.59%	2.59%	4.4% APRC	4.4% APRC	2.00%	4.59%	£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 £93,508 payable over 25 years initially on this variable rate product for 2 years at 2.59% and then on our Commercial Variable Base Rate (CVBR), currently 4.59% for the remaining term of the mortgage, would require 24 monthly payments of £423.74 and 276 monthly payments of £517.06. The total amount payable would be £154,052 made up of the loan amount plus interest (£59,370), 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.

5 YEAR FIXED RATE

Your interest rate is fixed at the rate shown until 1st July 2025, followed by our Commercial Variable Base Rate (CVBR), currently 4.59%, 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%	4.6% APRC	4.6% APRC	4.59%	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 July 2021, 4% before 2nd July 2022, 3% before 2nd July 2023, 2% before 2nd July 2024 and 1% before 2nd July 2025 of the amount repaid) if you repay all or part of your mortgage before 2nd July 2025 Representative Example: A mortgage of £93,508 payable over 25 years initially on this fixed rate product until 1st July 2025 at 4.09% and then on our Commercial Variable Base Rate (CVBR), currently 4.59% for the remaining term of the mortgage, would require 60 monthly payments of £498.23 and 240 monthly payments of £520.09. The total amount payable would be £155,825 made up of the loan amount plus interest (£61,207), arrangement fee (1% of mortgage amount) and other lending fees (£25). The overall cost for comparison is 4.6% 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.

2 YEAR FIXED RATE

Your interest rate is fixed at the rate shown until 1st July 2022, followed by our Commercial Variable Base Rate (CVBR), currently 4.59%, 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%	4.6% APRC	4.6% APRC	4.59%	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 July 2021 and 1% before 2nd July 2022 of the amount repaid) if you repay all or part of your mortgage before 2nd July 2022 Representative Example: A mortgage of £93,508 payable over 25 years initially on this fixed rate product until 1st July 2022 at 3.54% and then on our Commercial Variable Base Rate (CVBR), currently 4.59% for the remaining term of the mortgage, would require 24 monthly payments of £470.13 and 276 monthly payments of £520.79. The total amount payable would be £156,131 made up of the loan amount plus interest (£61,513), arrangement fee (1% of mortgage amount) and other lending fees (£25). The overall cost for comparison is 4.6% 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.

2 YEAR DISCOUNT VARIABLE RATE

Your interest rate tracks our Commercial Variable Base Rate (CVBR), currently 4.59%, 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%	3.44%	3.44%	4.6% APRC	4.6% APRC	1.15%	4.59%	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 £93,508 payable over 25 years initially on this variable rate product for 2 years at 3.44% and then on our Commercial Variable Base Rate (CVBR), currently 4.59% for the remaining term of the mortgage, would require 24 monthly payments of £465.12 and 276 monthly payments of £520.41. The total amount payable would be £155,906 made up of the loan amount plus interest (£61,288), arrangement fee (1% of mortgage amount) and other lending fees (£25). The overall cost for comparison is 4.6% 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.

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 60% of the property value
Loan size	The minimum loan size is £75,000 The minimum property value must be £125,000 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.

Latest News

Buying a holiday let property? Make sure you ask these 12 questions

We asked the team over at Sally’s Cottages, a family run holiday home letting agency based in Cumbria, and Chris Dacre, a holiday let mortgage specialist here at The Cumberland for their top questions to ask when viewing a holiday let property.

New 2-Year Fixed Rate Holiday Let Mortgage

We launched a new 2-year fixed rate holiday let mortgage this week, available throughout the UK.

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We love any excuse to celebrate Cumbrian businesses, and our customers’ successes.

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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.

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