Holiday Lets/Airbnb

A holiday let mortgage is designed for people looking to buy a property that will be let out on a short-term basis.

It differs from a second home mortgage where you are buying a second home that only you will use. It also differs from a buy to let mortgage where the property is rented out on a long-term basis.

The main advantage of short-term letting is that the property has the potential to generate a higher income. You may also have the option of using the property yourself for a number of weeks per year.

The lender will usually ask for a local letting agent to confirm the low, mid & high season rates and then take an average to calculate the projected annual rental income. Typically, a lender may assume 30 weeks occupancy per year to allow for void periods and personal use.