A Holiday Let Mortgage is taken out on a property that is then let on a seasonal basis and used for holiday rental. It is similar to a Buy to Let mortgage except the maximum amount that a lender will permit is not based on a regular income but uses an average of the rates charged during high, mid and low season.

Holiday Let Mortgages can usually be set up on either an interest only basis or a capital and interest basis however some lenders may require the borrower to have a minimum additional personal income.

Within this sector the seasonal nature of the income, along with other factors such as possible higher levels of unoccupancy during low season, can make lending much more complex. For this reason, many lenders impose stricter criteria for those looking for a Holiday Let Mortgage. These do vary by lender but could include requiring applicants to own their own home, be over the age of 21 and have a minimum deposit.