Holiday Home Mortgages

“Mortgage options for a new holiday home”


There’s a misconception that arranging holiday home mortgages is a difficult task, however, it can be quite straightforward if you know what you’re doing. That said, there are a few more considerations than with a standard residential mortgage. House & Holiday Home Mortgages can support you through every step of the process, from finding the right lender, to choosing the best type of mortgage for your residential holiday home in the UK. 


When buying a holiday home in the UK, there are several potential incentives for wanting to do it. If you do not intend to rent the property out, you want another residential mortgage for the holiday home. This is largely the same as taking out a traditional mortgage, like you did for your main home of residence. 

The main difference between this type of mortgage and a standard mortgage on your primary home is that the lenders will employ a stricter assessment of your finances. They need to know that you are in a position to meet the repayment plans on both mortgages.

It should also be noted that a large deposit will be needed. It’ll almost certainly be at least 15%, but many lenders set the threshold to 25%. For this reason, many homeowners may consider re-mortgaging their main home to free up the funds needed to take on the holiday home mortgage.

When you use this type of residential mortgage, there are limitations on how the holiday home can be utilised. Otherwise, you could face financial and legal repercussions. HHH Mortgages can advise you on all aspects of the legal implications while also supporting you through analysing lenders and offers.

Emma BurryEmma Burry
07:19 22 Oct 22
We have used HHH mortgages twice in the past year and we can’t fault their service. Sally has supported our applications twice and made sure she has communicated effectively with us every step of the way- even whilst she was on holiday! Both Sally and Caroline helped with a complicated application and were in touch daily- we can not thank them enough as they have helped us to secure a mortgage for our dream home!
Jenni CluttenJenni Clutten
09:32 18 Oct 22
Sally couldn’t have done more to help me secure a house and mortgage over the last 12 months. I have finally completed on my home and I am so grateful for her advice and patience with me, as I embarked on trying to buy a renovation property in an extremely competitive housing market. I always had absolute trust in HHHM to ensure I was getting the best rates and that they were considering my long term needs. The phrase going above and beyond doesn’t describe enough, how thoughtful and dedicated Sally has been to getting me across the line. Thank you!
Lydia ColeLydia Cole
18:43 11 Oct 22
I cannot rate Craig from HHH mortgages highly enough. As a first time buyer I found the prospect of buying a flat quite daunting. Craig not only secured me a great deal on a mortgage but also supported me throughout the process of the sale through to completion. Craig was always on hand for advice and help and was particularly helpful at dealing with my solicitors and ensuring any problems were dealt with quickly. Craig also spent a lot of time chasing updates on my behalf which alleviated so much stress for me. I’m very grateful for all the work Craig put in and he’s been a joy to work with. I will definitely be recommending him and returning to him in the future!
Rachael BakerRachael Baker
13:33 14 Sep 22
Joe and Ben at HHH Mortgages were great! I had a few tricky circumstances to navigate, and they were both super helpful throughout, professional, and came up with solutions to make the entire remortgaging process a joy. Would highly recommend and definitely will be working with them in the future!
Pat TalbotPat Talbot
16:34 04 Apr 22
A professional company with a personal touch. It was good to speak with an advisor who not only listened patiently whilst we explained our problem, but relentlessly sourced a wide range of options with speed, care and attention to detail.
Claire HillyerClaire Hillyer
19:54 28 Mar 22
Since 2016, Mark has supported us in finding two affordable mortgages and (importantly) ones that have been just right for our needs. He has always listened to our requirements and helped us to explore different options. Mark has a caring nature and we’ve appreciated him guiding us through what could have been a stressful process. We would recommend him to anybody.
Elaine ReaderElaine Reader
19:23 20 Dec 21
Having entered the house-buying process with some trepidation, given our circumstances (self-employed, etc.), we cannot be more grateful for the superb service provided by Joe and Ben at HHH. They were always easy to contact, friendly, helpful, and took time to explain everything to us. The whole experience was notable for a level of care and attention to detail rarely seen.We cannot recommend them highly enough.
Paul JohnPaul John
14:03 01 Dec 21
A seamless, professional service, from start to finish. HIghly recommended. Mark took the time to understand our exact needs and matched us with the ideal product at a very competitive rate.
Annabelle MilesAnnabelle Miles
13:46 17 Nov 21
Brilliant service as always – Mark is a delight and answered all our questions about our remortgage swiftly!
James WatsonJames Watson
10:35 08 Nov 21
We have received superb service from House & Holiday Home Mortgages, and we would not hesitate to recommend them. From start to finish, Joe Stallard and Ben Walker have both been excellent – friendly, easily contactable, quick to reply to emails and totally professional throughout. It is fair to say that they have made the whole process a pleasure. Thank you!
Matt GMatt G
13:22 27 Jul 21
Sally helped me buy my first house in 2021, at the height of the stamp duty holiday property rush. She not only found an excellent mortgage deal, but was full of useful advice all the way through the process of house buying: from viewings to completion. Despite the busyness of the market, Sally was always responsive and efficient, finding and applying for mortgage deals with impressive speed.Would definitely recommend her to any first time buyers: made the whole process so much easier and went such a long way having someone on hand to explain the confusing world of house hunting.

UK Holiday Let Mortgages

Owning a holiday home in the UK is a great way to add a little luxury to your life while building your assets for the long-haul. However, it can also become a revenue generator thanks to short-term rentals. Given that this is a form of investment property; you will need a dedicated holiday let mortgage.

While this type of niche mortgage is often underwritten on an individual basis, they are available from banks and financial institutes across the UK. You must avoid taking a standard buy-to-let mortgage because holiday tenants do not necessarily meet the assured short-hold tenancy criteria.

When taking out holiday home or holiday cottage mortgages, you will need a deposit of at least 25%, although there is a lender who will consider a 20% deposit. Meanwhile, due to the seasonal fluctuation of revenue, the lender will use stringent financial assessments. The lender will make their affordability assessment based on averaging how the property rents out during high, medium, and low seasons, and the different rates it can achieve.

As a typical example, if the average rental over a 30-week period is £800 per week, that would typically mean you could borrow up to around £295,000, provided of course you have a sufficient deposit and meet the lender’s other criteria.

If it sounds complicated, don’t worry. As your go-to holiday home mortgage advisor, we are able to talk you through this and help you understand what level or mortgage is achievable based on those figures.

Finally, you should be aware that the associated fees and interest rates holiday home or holiday cottage mortgages can be a little higher than traditional buy-to-let. Lenders view holiday lets differently because they’ll have a number of guests staying in the property throughout the year. When handled correctly, though, they can be a wonderful asset for you.


Since the introduction of budget airlines, many people consider the prospect of buying a residential holiday home abroad. While this can require a little additional effort, you will have two main options at your disposal; either use a UK lender, or use a bank/lender in the country where you plan to buy.

When using UK lenders, it’s probable that holiday home mortgage products will only be offered by banks that already have offices and a presence in the destination country. This does limit your options, but finding a lender for properties in popular markets like Spain, France, or Italy, should not prove too difficult.

For non-UK lenders, the most likely solution is to partner with a broker in the country of the holiday home. While the exact arrangements do vary from country to country, you will almost certainly need a bigger deposit when taking this path.

As a UK-based holiday home mortgage broker, we don’t arrange mortgages for foreign property ourselves, however, do have some great partners that we’ll happily put you in touch with if that’s what you’re looking for.


When buying a holiday home or holiday let, you must also consider the outside factors. Stamp Duty is perhaps the most important, as you will face a 3% surcharge. So, if you’re buying a property between £125,001-£250,000, the usual 2% stamp duty charge becomes 5%. It’s very important that you fully understand what stamp duty will be due, and your solicitor will help you with this.

There are several other costs to consider during the purchase, such as Insurance, Mortgage fees and maintenance bills. We’ve got some amazing partners that can help you with all your needs. Meanwhile, if the holiday home is located abroad, currency exchange rates require your attention too.

Nonetheless, getting a holiday home mortgages or a holiday let mortgage is still an option that can bring many rewards. To find out more and take the first steps, give House & Holiday Home Mortgages a call today.

How we can help

We specialize in second home and Holiday Home mortgages, and have the experience to help you.

Get in touch today to discuss your situation in more detail.

Your home may be repossessed if you do not keep up repayments on your mortgage

Need help? Give us a call or request help by sending us a message through our contact page.

Mark made the whole process of buying my first property so much easier than it could have been. His help and continued support was invaluable. I have already recommended him to several friends and colleagues.

Polly H - Gloucestershire