Holiday Let Lending Criteria

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.

In all cases, the following criteria apply:

Applicant type	We lend to sole traders and partnerships, Limited Company Special Purpose Vehicle, Limited Liability Partnerships Special Purpose Vehicle or Existing trading businesses. Applicants must reside in the UK and 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	The minimum loan size is £75,000 and maximum single loan size is £6,000,000 Total maximum exposure £15m
Loan size	The minimum loan size is £75,000
Term	Maximum mortgage term is 30 years
Repayment Method	Both Interest Only and Capital & Interest Repayment are available
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 – the following scenarios (section 1 & 2) are for interest only applications, see section 3 for additional information in relation to repayment mortgages (capital and interest)- 1. For House Purchase & remortgage with additional borrowing For variable products or product rates fixed for a period of less than 5 years, the annual rental income should be a minimum of 145% for sole trader and partnerships and 125% for Limited company applications (after deduction of 20% from the gross rent for letting agent costs) of the annual mortgage interest calculated using the rate of 5.5% or product rate + 2%, whichever is the highest. For product rates fixed for a period of 5 years or more, the annual rental income should be a minimum of 145% for sole trader and partnerships and 125% for Limited company applications (after deduction of 20% from the gross rent for letting agent costs) of the annual mortgage interest calculated using the product rate. 2. For remortgage with no additional borrowing (excluding arrangement fee if being add to the loan) The annual rental income should be a minimum of 145% for sole trader and partnerships and 125% for Limited company applications (after deduction of 20% from the gross rent for letting agent costs) of the annual mortgage interest calculated using the product rate. 3. For loans on a repayment basis (capital and interest) for all categories of lending noted above For the new lending affordability calculation, where a repayment mortgage is required, we will look to evidence Debt Coverage Ratio (DCR) at 125% coverage for sole trader and partnerships and 110% coverage for Limited company applications with a further check that it will meet Interest Coverage Ratio (ICR) as per the above guidance. The application must meet both the Debt Coverage Ratio (DCR) & Interest Coverage Ratio (ICR) requirements, if it falls short on either then top slicing may be considered.
Applicant/Shareholder age	We are unable to provide lending if any of the shareholders are under 18 years old