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.

Make it happen with a mortgage from The Cumberland

  • We provide lending for Holiday Let properties of traditional construction on mainland UK (including the isles of Anglesey, Arran, Isle of Wight and Isles of Mull, Skye & Harris)
  • We offer mortgages up to 75% LTV
  • We lend to first-time Holiday Let investors
  • We finance properties in the name of individuals or Limited company SPVs
  • We offer a range of mortgage products, please click here for more information
  • Our expert relationship managers provide a friendly and personal service

Our Intermediary team can consider applications from in the following circumstances:

  • Borrowing in personal names*
  • Borrowing through a limited company SPV*
  • Maximum of 6 investment properties on completion of new loan*
  • Total mortgage exposure of £2m with The Cumberland*
  • Property has less than 4 properties on one title / estate*
  • Property has less than 12 acres of land*

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.

*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.

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.

How can we help you?

Key Information

  • Our Holiday Let Mortgage criteria

    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

    Repayment Method

    Both Interest Only or 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% (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% (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% (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 DSC at 125% coverage with a further check that it will meet ICR at 145% (after deduction of 20% from the gross rent for letting agent costs). The application must been both the DSR & ICR requirements, if it falls short on either then top slicing may be considered
    Shareholder age

    We are unable to provide lending if any of the shareholders are under 18 years old

  • Specialist Products

    In the following circumstances, Specialist products apply:

    • Lending through Limited Company SPV
    • Property occupancy restrictions apply
    • The HM land registry title includes more than single letting unit
    • Security address is above commercial premises
    • Capital raising where funds are to be used to consolidate debts of £25k or more

Existing Cumberland Holiday Let Customers: If you are an existing Cumberland Holiday Let Customer and your existing deal is coming to an end, please click here to here to view our range of products available for existing customers.

Existing Cumberland Holiday Let Customers

Latest News

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The Cumberland has helped an award-winning Cumbrian Guest House to thrive with its people centred approach, by investing in the owners and supporting them with financial services.





Photo: Industry insights for Holiday Let owners
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At The Cumberland, we understand how working collaboratively with the business community can add a layer of support for those operating in the hospitality industry. That’s why we have partnered with Host & Stay to assess the trends which are affecting holiday let owners.

Photo: The Cumberland announces patronage of NACFB
The Cumberland announces patronage of NACFB

The Cumberland Building Society has become a patron of the National Association of Commercial Finance Brokers (NACFB) to strengthen its support for hospitality business owners.

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