Holiday let mortgages in Leeds
Buying a holiday home to let?
You need a specialist mortgage.
Buying a cottage in the Dales to let out to holidaymakers is a very different proposition to buying a flat to rent on a long tenancy. The income arrives in bursts, it swings with the seasons, and the mortgage that funds it is a specialist product: a holiday let mortgage.
Say you have your eye on a two-bedroom cottage near Harrogate to let on weekly holiday bookings and the occasional Airbnb stay. A standard buy-to-let lender will often say no, because the income is short-term and seasonal rather than a steady monthly rent. A holiday let mortgage is designed around exactly that pattern.
Holiday Let Mortgage Explained
A holiday let mortgage is a buy-to-let mortgage for a property you let to holidaymakers on a short-term basis, rather than to tenants on a long tenancy. Lenders assess it on the rental income the property can earn across the year, usually using an average of low, mid and high-season weekly rates, rather than a single monthly figure.
Because bookings are short and seasonal, this market sits with specialist lenders and building societies rather than the everyday high street. Airbnb-style lets can be financed too, though some lenders have their own rules about how much short-let use they will accept, which is worth checking before you buy.
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Who Holiday Let Mortgages Are For.
A holiday let mortgage tends to suit:
- •Someone buying a cottage or coastal property to let to holidaymakers.
- •An owner switching a property to short-term or Airbnb-style letting.
- •An investor adding a holiday let to a wider property portfolio.
- •A buyer who wants occasional personal use of the property alongside letting it.
Holiday lets can earn more than a standard let in a good location, but they also carry more risk. Empty weeks, seasonal demand, cleaning and management costs and higher upkeep all affect the numbers, so it pays to be realistic about occupancy.
Assessing a holiday Let Mortgage.
Lenders look at the projected holiday income, usually asking for evidence such as a letting agent's forecast of low, mid and high-season weekly rates, and they stress that income to make sure it covers the mortgage with room to spare. They also look at the property, the location and its letting appeal, and at your wider income and experience.
You will normally need a larger deposit than for a home you live in, often around 25% to 30% of the value, and many holiday let mortgages are arranged on an interest-only basis. A minimum personal income is sometimes required on top of the rental projection.
Tax Rules & Comparison Table
The tax rules for holiday lets changed recently. The furnished holiday lettings regime was abolished from April 2025, so holiday lets are now taxed broadly as an ordinary property business. We advise on the mortgage rather than on tax, so please take specialist tax advice on how the change affects you before you commit.
Holiday Let vs Standard Buy-to-Let
| What lenders look at | Standard buy-to-let | Holiday let mortgage |
|---|---|---|
| Type of letting | Long tenancy, steady monthly rent | Short-term, seasonal holiday bookings |
| Income assessment | Single monthly rent | Average of low, mid and high-season rates |
| Lender choice | Wide | Narrower, mostly specialist lenders |
| Deposit | Commonly from around 20 to 25% | Commonly around 25 to 30% |
| Personal use | Not usually allowed | Often allowed for part of the year |
How Feel Good Financial Can Help.
Feel Good Financial has advised property buyers across Leeds and the wider Yorkshire region since 2012, and in 2025, we arranged more than £251 million in mortgage lending, with 85% of those mortgages protected by a policy alongside them. Yorkshire is full of strong holiday let locations, so this is a market we know well.
We compare holiday let deals across our extensive panel of lenders, including specialist names you will not find directly, and we help you present a realistic income forecast in the way lenders want to see it. We will explain the deposit, the stress test, any personal-use rules and the fees clearly, before you commit to anything, and point you towards proper tax advice where you need it.
Buying a holiday let or switching to short-term letting?
Book today for a free, no-obligation chat with one of our advisers. We will compare specialist lenders, explain how the income is assessed, and help you fund the property with confidence.
Let’s get started.
Holiday let mortgage FAQs
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Often, yes. A holiday let mortgage can cover short-let and Airbnb-style use, but some lenders limit how much short-term letting they will accept, so it is worth checking the rules before you buy. An adviser can match you to a lender that is comfortable with your plans.
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Usually around 25% to 30% of the property value, though it varies by lender and property. Holiday let mortgages generally require a larger deposit than a home you live in.
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Lenders use the projected letting income, typically an average of low, mid and high-season weekly rates rather than a single monthly rent, and stress it to make sure it covers the mortgage comfortably.
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Many holiday let lenders allow some personal use during the year, which is one of the attractions. The exact limits vary, so check before you apply if this matters to you.
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Important Information:
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Changes in interest rates may affect your monthly repayments. Ensure you understand the terms and risks before proceeding, There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £695 for a purchase application and £300 for a remortgage.