Holiday let mortgage calculator

One of the first things holiday let buyers want to know is how much they can borrow. 

Here are some handy tips to help with just that!

How much can I borrow for my holiday let purchase?

One of the first things holiday let buyers want to know is how much they can borrow. Here are some handy tips to help with just that!

Unlike most residential mortgages where a client’s income and credit commitment drive the borrowing amount, when it comes to holiday lets this is more often driven by the rental potential of the property.

Lenders will base borrowing figures from the expected rental performance of the property in question, as determined by a holiday letting agent.

Each lender has their own detailed calculations, so online calculators should be used as a rough guide only but they’ll give you a good ballpark view of what’s achievable.

This can be done in one of two ways:

If you need help finding a suitable holiday letting agent to obtain figures from then let us know – we can put you in touch with some great people!

It’s important to note that lenders often include their own estimations of managing/running costs and occupancy levels and these are baked into the calculations. Therefore, make sure you’ve entered gross figures.

If the figures don’t get to where you want to be, don’t worry. Some lenders might have more generous allowances or sometimes they’ll consider this on your incomes and existing credit commitments rather than the rental values. Speak to a member of our team today and we can look into this in more detail for you.

Remember, the vast majority of holiday let lenders will require a minimum deposit of 25% so the figures in the calculators will be capped at this level.

There’s also each lender’s criteria to be aware of. Our holiday let mortgages page showcases this in more detail but generally lenders are looking for applicants to meet the following:

There are exceptions to all of these, so do get in touch if you want to chat through your specific circumstances.