Property type
Holiday let / short-term let mortgages
Paul says
Holiday lets work differently to standard BTL — seasonal income, narrower lender list, and licensing to think about.
Holiday lets sit on a separate mortgage shelf to standard BTL because the income is seasonal — lenders can't apply a flat ICR test to it.
Instead, they ask for low/mid/high season weekly projections from a recognised holiday-let agent, and average them into an annualised figure.
Lender appetite has narrowed since 2023 — a smaller subset of building societies and specialists are active, and most cap the loan at 75% LTV with a personal income overlay.
For pure short-term let (Airbnb-style) without an agency in the loop, the pool shrinks further again, and expect questions about local council STL licensing.
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