Building Society Holiday Let Mortgage Guide UK

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UK Holiday Let Mortgage Guide · 2026

Building Society Holiday Let Mortgage Guide UK

A holiday let needs a different mortgage from an ordinary residential home and usually a different product from a standard buy-to-let. The lender has to be comfortable with short guest stays, seasonal rental income, the property’s location and, in some cases, your own use of the property.

This guide compares specialist holiday let lending from UK building societies including The Cumberland, Furness Building Society, Leeds Building Society and Principality. It also explains deposit requirements, rental-income tests, personal use, interest-only borrowing, tax changes and the checks to make before buying a cottage, apartment or other short-term holiday rental.

Compare Building Societies Understand Rental Affordability Holiday Let Application Checklist
Mortgage warning: a holiday let is an investment property with variable occupancy and operating costs. Your property may be repossessed, or a receiver of rent may be appointed, if you do not keep up the mortgage repayments. This page provides general information rather than personalised mortgage, legal or tax advice.

Meaningful editorial review: 27 September 2026. Holiday let mortgage rates, product fees, local short-term letting rules and lender criteria can change. Always re-check the live building society criteria before paying a reservation fee or submitting an application.

Holiday Let Mortgage: Quick Answers

What it finances A property intended to be rented to holidaymakers for short stays rather than occupied by a long-term residential tenant.
Typical deposit Many mainstream specialist products require around 25%, although some building societies currently lend at higher LTVs.
Current higher-LTV example Furness Building Society currently publishes holiday let criteria up to 80% LTV, subject to full eligibility.
Personal use Some lenders permit owners to stay in the property for part of the year, but the permitted use differs by lender.
Affordability Lenders may assess expected low-, mid- and high-season rent rather than relying on one monthly AST rent figure.
Repayment method Holiday let products can be available on interest-only, repayment or both, depending on the building society.
2026 tax position The former Furnished Holiday Lettings tax regime has been abolished, so old FHL tax advantages should not be assumed.
Mortgage approval is not enough You must separately check planning, licensing, insurance, fire-safety and local short-term letting rules.
Fast answer: The Cumberland is particularly flexible for specialist structures and first-time holiday let investors; Furness currently goes up to 80% LTV and permits personal use within its criteria; Leeds has a mainstream holiday-let range up to 75% LTV; and Principality offers holiday-let lending up to 75% LTV in England and Wales without a published minimum-income requirement. Which route fits depends on the property, rental assessment, ownership structure and your wider finances.

What Is a Holiday Let Mortgage?

A holiday let mortgage is designed for a property that will be rented to paying guests for short periods. That is different from a conventional buy-to-let, where the usual business model is a tenant occupying the property as their home for a much longer period.

Holiday let mortgage

  • Guests usually stay for days or weeks.
  • Rental income changes by season.
  • Bookings may come through Airbnb, Booking.com, Vrbo, an agent or direct bookings.
  • Some lenders permit owner occupation for part of the year.
  • A specialist rental assessment is normally required.

Standard buy-to-let mortgage

  • Designed mainly around longer residential occupation.
  • Affordability often uses expected monthly tenancy rent.
  • Personal use by the landlord is generally incompatible with a normal BTL arrangement.
  • Standard BTL criteria may not permit holiday-platform bookings.
  • Using a normal BTL contrary to its terms can breach mortgage conditions.
Do not buy on a residential or ordinary BTL mortgage and “sort it out later”. Tell the mortgage provider how the property will actually be used. Short-term holiday letting, Airbnb-style occupancy and owner stays can materially change which mortgage is appropriate.

Building Society Holiday Let Mortgage Comparison 2026

These are useful specialist building-society routes to investigate. This is not a ranking: different lenders solve different problems, and a product that works for a straightforward cottage may not work for a limited company, multi-unit property or heavily seasonal location.

Building society
Maximum LTV
Useful distinction
Important check
The Cumberland
Up to 75%
First-time holiday let investors, individuals, limited companies, LLPs and some more complex property structures.
Property location, portfolio size, ownership structure and whether the security needs specialist/commercial treatment.
Furness
Up to 80%
Personal use allowed within criteria, manual underwriting and affordability using personal income plus rental income.
Home ownership, minimum earned income, rent coverage, minimum property value and EPC/product rules.
Leeds Building Society
Up to 75%
Dedicated direct holiday-let mortgage range with two- and five-year options.
Minimum primary income and currently restricted holiday-let lending in specified postcode areas.
Principality
Up to 75%
No published minimum-income requirement and applicants do not have to own their own home under current holiday-let criteria.
England and Wales only, age rules, maximum holiday-let count and rental coverage.
Why no permanent rate ranking? Holiday let products can be repriced or withdrawn quickly. LTV, fees, rental calculations and property criteria usually matter more than copying one day’s cheapest headline rate into a long-lived article.

The Cumberland Holiday Let Mortgages

Specialist and complex cases

The Cumberland has a long-standing specialist holiday-let proposition and currently lends on qualifying traditional-construction holiday let properties across mainland UK plus selected islands.

It is particularly relevant where the application is not completely standard. The Society says it can consider first-time holiday let investors, individuals, limited companies and LLPs, along with some multiple-unit and split-title structures.

Maximum LTV Up to 75% under the mainstream holiday-let proposition.
First holiday let The Cumberland explicitly says it lends to first-time holiday let investors.
Ownership Individual, limited-company and LLP structures can be considered under the relevant criteria.
More complex property Some multiple-unit, split-title and commercial-element cases may be considered through specialist or commercial routes.
Potential fit: The Cumberland can be worth checking where the property or borrowing structure is more complex than a single conventional holiday cottage in personal names.

Official Cumberland The Cumberland Holiday Let Mortgages

After opening this link:

  1. Read the current Holiday Let overview and maximum LTV.
  2. Check that the property location falls within the geographical area Cumberland will consider.
  3. Open the current product or rate section rather than relying on an old mortgage rate.
  4. If buying through a company or LLP, check which ownership category applies.
  5. If the title contains more than one letting unit, land or a commercial element, check whether specialist pricing applies.
  6. Use the eligibility or enquiry route before committing to the purchase.

Furness Building Society Holiday Let Mortgages

Up to 80% LTV

Furness currently publishes one of the higher mainstream holiday-let LTV limits among building societies in this guide. Its 2026 criteria permit qualifying holiday-let lending up to 80% LTV.

Furness also combines expected holiday-let income with the applicants’ wider finances, which may be helpful where the holiday property is part investment and part lifestyle purchase.

Maximum LTV 80% under current holiday-let criteria.
Earned income Current criteria state total applicants’ earned income should be at least £30,000.
Existing home Applicants currently need to own their own home.
Rental test Rent should be at least 125% of the monthly mortgage payment at the initial product pay rate under its published criteria.
Personal use Furness currently advertises personal use of the holiday property for up to 90 days per year.
Repayment basis Interest-only and capital-and-interest applications can be considered.
Location Qualifying holiday-let properties in England, Scotland and Wales can be considered.
Minimum property value Furness currently states £125,000 on its customer holiday-let eligibility page.

Official Furness Furness Holiday Let Mortgages

After opening this link:

  1. Check the current maximum LTV and deposit requirement.
  2. Confirm that you meet the home-ownership and earned-income criteria.
  3. Estimate the property’s expected annual and seasonal gross rent.
  4. Check whether the expected rent meets the published rental test.
  5. If you plan to use the property yourself, confirm the current personal-use allowance.
  6. Use the mortgage finder for today’s rates and exact product fee.
EPC and product conditions: Furness product-specific criteria can add requirements beyond the general holiday-let rules. Check the actual mortgage product rather than assuming every 80% LTV case is treated identically.

Leeds Building Society Holiday Let Mortgages

Dedicated consumer range

Leeds Building Society has a dedicated holiday-let range for purchases and qualifying remortgages, with current products reaching 75% LTV.

Leeds is particularly clear about its income and rental-assessment rules. Its current intermediary criteria state that the primary applicant needs at least £40,000 primary income, or joint applicants need £60,000 combined primary income.

Maximum LTV 75% on the current mainstream holiday-let range.
Primary income £40,000 minimum primary income for a sole/primary applicant under current criteria.
Joint income £60,000 combined primary income for joint applicants under the published criteria.
ICR Current Leeds lending guidance applies a 170% ICR to holiday-let affordability calculations.
Application route Leeds currently says holiday-let products cannot simply be completed as a normal online consumer application.
Location restriction Leeds currently restricts new holiday-let lending in specified North Norfolk and parts of North Yorkshire postcode areas.

Official Leeds Leeds Building Society Holiday Let Mortgages

After opening this link:

  1. Review the current two- and five-year holiday-let products.
  2. Check whether you need 60% or 75% LTV pricing.
  3. Compare the initial rate, APRC, product fee and mortgage exit fee.
  4. Check the current maximum loan at your LTV.
  5. Read the holiday-let criteria, especially income and rental coverage.
  6. Check the restricted postcode information if buying in North Norfolk or North Yorkshire.
  7. Book the appropriate appointment when ready to discuss a new application.
Rate warning: Leeds publishes live holiday-let rates and can change them. Use its current mortgage table immediately before applying rather than relying on a rate copied from an older comparison article.

Principality Building Society Holiday Let Mortgages

England & Wales

Principality currently considers non-regulated holiday-let applications up to 75% LTV on an advised basis. A notable difference is that its published holiday-let criteria do not require the applicant already to own and live in another property.

Maximum LTV 75% under current holiday-let criteria.
Minimum income No published minimum-income requirement for its holiday-let proposition.
Existing homeowner? Principality says it can accept applicants who do not currently own and live in their own home.
Applicant age Holiday-let applicants should currently be aged 21 or over.
Portfolio limit Current criteria permit no more than two mortgaged holiday lets including the application.
Geography Principality mortgages are available on qualifying properties in England and Wales.
Rental assessment: Principality uses seasonal holiday-let rent in its affordability calculation and applies different stress-rate treatment depending on the mortgage product period. This is one reason a specialist rental appraisal can be more useful than an optimistic annual booking estimate.

Official Principality Principality Buy to Let & Holiday Let Mortgages

After opening this link:

  1. Choose the Holiday Let product section rather than ordinary residential or BTL borrowing.
  2. Check the live mortgage rate and maximum LTV.
  3. Review the product fee and Early Repayment Charges.
  4. Check the current maximum loan at your chosen LTV.
  5. Read the rental coverage calculation.
  6. Use the advised application route when you are ready to proceed.

How Much Deposit Do You Need for a Holiday Let Mortgage?

A 75% LTV mortgage requires 25% equity or deposit. An 80% LTV holiday-let mortgage requires 20%. The deposit is only part of the money needed because furnishing, legal work and getting the property guest-ready can add substantial upfront costs.

£40,000 20% deposit on a £200,000 property.
£50,000 25% deposit on a £200,000 property.
£60,000 20% deposit on a £300,000 property.
£75,000 25% deposit on a £300,000 property.
£80,000 20% deposit on a £400,000 property.
£100,000 25% deposit on a £400,000 property.
A bigger deposit can change more than the interest rate. Lower LTV can increase lender choice, reduce rental coverage pressure, improve pricing and make a marginal holiday-let affordability case easier to place.

How Building Societies Assess Holiday Let Rental Income

A holiday let rarely produces the same income every month. A seaside cottage might be heavily booked in August and much quieter in January, so lenders often need a specialist holiday-let rental assessment instead of a standard letting-agent AST figure.

High-season rent Expected weekly rent during the property’s strongest booking periods.
Mid-season rent A realistic rate for shoulder months rather than assuming peak summer pricing all year.
Low-season rent Expected weekly income when demand is weaker.
Occupancy assumption The lender may use a specified number of lettable weeks rather than 52 fully booked weeks.
ICR Income Cover Ratio compares assessed rental income with stressed mortgage interest.
Personal income Some building societies also require or assess your employment, self-employed or other earned income.
Do not use an Airbnb revenue estimate as though it were guaranteed income. A mortgage lender may ask for an independent holiday-let agent’s assessment and can apply a more cautious calculation than an online booking platform or property seller.

What to ask the holiday letting agent for

  1. Expected weekly rent in high season.
  2. Expected weekly rent in mid season.
  3. Expected weekly rent in low season.
  4. Likely number of occupied weeks rather than theoretical maximum occupancy.
  5. Comparable local holiday lets supporting the estimate.
  6. Expected management commission and booking-platform costs.

Can You Stay in Your Own Holiday Let?

Sometimes, but the mortgage terms decide what is permitted. Personal use is one of the clearest differences between specialist holiday-let finance and ordinary buy-to-let.

Furness currently advertises personal use for up to 90 days each year on its holiday-let proposition. Other lenders can use different limits or conditions, so do not copy one lender’s rule to another mortgage.

Plan your own stays before choosing the mortgage. If you want to spend school holidays, Christmas or several summer weeks at the property, tell the lender or adviser. Owner occupation can reduce rentable weeks and therefore affect the rental assessment.

Interest-Only or Repayment Holiday Let Mortgage?

Interest only

  • Monthly mortgage payments cover interest rather than reducing the original capital.
  • Can reduce monthly cash outflow while operating the property.
  • You need a credible strategy for repaying the capital at the end.
  • You remain exposed to the full original debt unless capital is repaid separately.

Capital repayment

  • Monthly payments include interest and repayment of capital.
  • The mortgage balance should reduce over the term if payments are maintained.
  • Monthly payments are normally higher than an equivalent interest-only arrangement.
  • Can gradually increase your equity without relying entirely on a future sale.
Interest-only does not mean the property is self-funding. You still need to budget for empty weeks, cleaning, utilities, repairs, insurance, platform commission and tax. At the end of the mortgage term, the capital remains payable.

Holiday Let Tax Rules Changed: The Old FHL Regime Has Ended

The former special Furnished Holiday Lettings tax regime was abolished from April 2025. That means a 2026 purchaser should not build an investment forecast using the old FHL tax advantages.

Income Tax change The special FHL treatment ended from 6 April 2025 for Income Tax and Capital Gains Tax purposes.
Companies The special FHL regime ended from 1 April 2025 for Corporation Tax purposes.
Mortgage interest HMRC states individual landlords are now generally subject to the residential property finance-cost rules rather than the old FHL treatment.
Capital allowances The special FHL capital-allowance treatment for new expenditure no longer continues under the former regime.
CGT reliefs Do not assume the former trading-style FHL capital gains reliefs apply to a new 2026 holiday-let investment.
Tax is separate from mortgage criteria A lender may still call the product a holiday-let mortgage even though the old FHL tax classification has ended.

Official HMRC Furnished Holiday Lettings Tax Regime Abolition

After opening this link:

  1. Read the abolition date that applies to your ownership structure.
  2. Open the detailed HMRC explanation of the withdrawn tax advantages.
  3. Check the finance-cost treatment if buying personally.
  4. Do not rely on an older holiday-let article quoting pre-April-2025 FHL benefits.
  5. Use an accountant or tax adviser for your own ownership and income position.
Ownership structure matters. Buying personally and buying through a limited company can produce different mortgage availability, tax treatment, legal costs and exit consequences. Choose the structure before exchanging contracts, not after the purchase is complete.

Holiday Let Rules Differ Across England, Wales and Scotland

A mortgage offer gives you finance. It does not automatically give permission to operate the property as short-term visitor accommodation.

England Check the local council for planning requirements, registration arrangements and any local short-term letting rules. Government guidance also covers fire, gas, electrical, insurance and other operator responsibilities.
Scotland Short-term let licensing is mandatory. New hosts must obtain the appropriate short-term let licence before accepting bookings or receiving guests.
Wales Check Welsh and local-authority rules covering planning, council tax or non-domestic rates, visitor accommodation and any local restrictions before purchase.

Official England guidance Rules for Letting a Self-Catering Holiday Home in England

After opening this link:

  1. Check the tax section and note the abolition of the FHL regime.
  2. Review fire-safety requirements.
  3. Check gas, electrical and carbon-monoxide responsibilities.
  4. Read the insurance guidance.
  5. Contact the local council about planning and local registration requirements.

Official Scotland guidance Scottish Government Short-Term Let Licensing

After opening this link:

  1. Confirm which short-term let licence type fits the property.
  2. If the holiday property is not your main home, read the secondary-letting rules.
  3. Use the local council licensing route for the property address.
  4. Check the required documentation and safety certificates.
  5. Do not accept guests before the applicable licensing requirements are satisfied.

Holiday Let Costs to Budget for Beyond the Mortgage

Holiday letting has more operating costs than simply collecting rent and paying a mortgage. A property can look profitable on gross booking revenue while producing a much thinner net return.

Property purchase tax Additional-property taxes differ across England and Northern Ireland, Wales and Scotland. Check the rules that apply to the purchase location and ownership structure.
Solicitor and searches Include conveyancing, searches, title issues, lease review and specialist legal work for company ownership where relevant.
Mortgage costs Product fee, valuation, legal fees, broker charges, transfer fees and later redemption or exit fees may apply.
Holiday-let insurance Normal home insurance may not cover paying short-term guests. Use cover designed for the actual letting activity.
Booking fees Platform commission, payment processing and property-management charges reduce gross rent.
Turnover costs Cleaning, laundry, guest supplies and maintenance occur much more frequently than in a standard long-term tenancy.
Utilities Owners commonly pay electricity, heating, water, broadband and other services used by guests.
Empty periods Mortgage and fixed running costs continue when the calendar has no bookings.
Safety compliance Budget for required inspections, alarms, servicing, licences or certificates applicable to the property.
Furniture replacement Guest turnover can increase wear on beds, sofas, appliances, linen, flooring and kitchen equipment.

Holiday Let Profit Check: Use Net Income, Not Headline Booking Revenue

Before applying, build a conservative cash-flow estimate. The lender’s rental calculation answers whether the mortgage fits its criteria; it does not tell you whether the business will produce the return you want.

Calculation
Include
Do not assume
Why it matters
Gross bookings
Realistic weekly rates × realistic occupied weeks.
52 weeks at peak-season rent.
Seasonality can change income sharply.
Operating costs
Cleaning, utilities, management, platform fees and maintenance.
Guests pay every property cost separately.
These costs reduce the actual property return.
Mortgage
Current payment plus a higher-rate stress scenario.
Your initial fixed rate lasts forever.
Refinancing conditions can be different when the deal ends.
Tax
Current post-FHL tax treatment for your ownership structure.
Old furnished-holiday-let tax advantages still apply.
Tax can materially change the return after finance costs.

Holiday Let Mortgage Application Checklist

Prepare both sides of the case: your personal finances and the holiday-let business case. Specialist lenders often want more property information than a standard residential mortgage application.

Purchase price and requested mortgage amount.
Deposit amount and evidence of the source of funds.
Expected high-, mid- and low-season weekly rent.
Independent holiday-let rental appraisal where requested.
Your employment or self-employed income evidence.
Existing residential and investment mortgage details.
Full property portfolio if you already own rental property.
Property address, construction type and tenure.
Remaining lease length for a leasehold property.
Details of any occupancy or holiday-use restriction.
Expected owner-use periods during the year.
Booking-platform or letting-agent plan.
Local licensing and planning position.
Insurance suitable for short-term paying guests.
Repayment strategy if applying interest only.
Company or LLP details if purchasing through an entity.

How to Compare Holiday Let Mortgages

  1. Confirm that the property can lawfully be operated as a holiday let.
  2. Get a realistic seasonal rental assessment.
  3. Work out your maximum comfortable LTV rather than automatically borrowing the maximum available.
  4. Remove lenders whose geography, income, property or ownership criteria do not fit.
  5. Compare the remaining products by rate, fee, APRC, ERC and permitted overpayment.
  6. Check whether you need interest only or capital repayment.
  7. Confirm how many days of personal use the mortgage permits.
  8. Stress-test the property for quieter bookings and a higher mortgage rate.
  9. Only then proceed to an Agreement in Principle or full application through the appropriate lender or adviser.

Properties That Can Need Extra Mortgage Checking

Holiday-use-only restriction A title or planning condition preventing normal residential occupation can narrow the lender pool.
Several cottages on one title A multi-unit estate may require a specialist lender or commercial assessment rather than a standard one-unit holiday-let product.
Owner accommodation on site Living in one part while letting the remainder can change the mortgage structure.
Large acreage Land size and agricultural use can trigger additional security criteria.
Commercial facilities A shop, café, swimming pool or other commercial element can move the case outside a normal holiday-let mortgage.
Non-standard construction Timber, modular or unusual properties may need specialist valuation and lender approval.
Lease restrictions A flat lease may prohibit short-term letting even when the local planning authority permits it.
Scottish short-term let Licence requirements should be checked before assuming the property can trade legally.

Common Holiday Let Mortgage Mistakes

Using an ordinary residential mortgage A residential mortgage normally does not permit running the property as a commercial short-stay holiday business without lender agreement.
Using a standard BTL product A normal buy-to-let mortgage may prohibit short bookings or owner occupation.
Trusting the seller’s income figure Ask for actual booking evidence where available and compare it with an independent seasonal rental appraisal.
Ignoring quiet months Stress-test the mortgage against lower occupancy, not only peak summer demand.
Assuming Airbnb permission Mortgage terms, lease conditions, planning rules and local licensing can all affect platform-based short-term letting.
Using old FHL tax articles The special Furnished Holiday Lettings tax regime ended in 2025.
Forgetting personal-use rules Staying in the property more often than the mortgage permits could breach the lender’s conditions.
Looking only at the interest rate Product fees, ERCs, rental stress tests and property restrictions can matter more than a small rate difference.

Related Building Society Guides

These published Building-Society.org pages are useful when you want to research the societies behind the specialist holiday-let products in more detail.

Cumberland Building Society: Savings, Mortgages & Online Banking Furness Building Society: Savings, Mortgages & Online Services Leeds Building Society: Savings, Mortgages & Account Help Principality Building Society: Login, Savings & Mortgages Yorkshire Building Society: Savings, Mortgages & Online Banking Yorkshire Building Society Mortgage Rates 2026

Official Sources to Check Before Applying

The Cumberland Holiday Let Mortgages The Cumberland Holiday Let FAQs Furness Holiday Let Mortgages Furness Holiday Let Criteria Leeds Holiday Let Mortgages Principality Holiday Let Products Principality Holiday Let Criteria HMRC FHL Tax Regime Abolition England Holiday Home Rules Scotland Short-Term Let Rules

2026 Editorial Verification Checklist

Cumberland maximum holiday-let LTV checked.
Cumberland first-time holiday-let investor route checked.
Cumberland company and LLP lending checked.
Furness 80% holiday-let LTV checked.
Furness £30,000 earned-income criterion checked.
Furness rental-coverage test checked.
Furness personal-use allowance checked.
Leeds 75% holiday-let range checked.
Leeds £40,000/£60,000 primary-income criteria checked.
Leeds holiday-let ICR treatment checked.
Leeds restricted-area warning checked.
Principality 75% LTV checked.
Principality no-minimum-income criterion checked.
Principality property-count and age rules checked.
FHL tax abolition checked against HMRC.
2026 England holiday-home operating guidance checked.
Scottish short-term let licensing position checked.
Published Building-Society.org internal links checked.

Review date: 27 September 2026. Live mortgage rates are intentionally linked to lenders instead of presented as a permanent cheapest-rate table.

Independent Mortgage, Tax and Legal Notice

Building-society.org is an independent informational website. It is not The Cumberland, Furness Building Society, Leeds Building Society, Principality Building Society, HM Revenue & Customs, a mortgage broker, accountant, solicitor or financial adviser.

Mortgage eligibility depends on the applicants, property, ownership structure, location, deposit, rental assessment, credit history and the lender’s live criteria. Tax treatment and local short-term letting rules can also change independently of the mortgage.

Before exchange: verify mortgage eligibility, planning or licensing requirements, lease restrictions, holiday-let insurance, tax treatment and the property’s realistic rental figures. A mortgage offer by itself does not confirm that you can legally operate the property as a holiday let.

Building Society Holiday Let Mortgage FAQs

1. What is a holiday let mortgage?

A holiday let mortgage is specialist finance for a property that will be rented to paying guests on a short-term basis. It differs from a normal residential mortgage and standard buy-to-let because the occupancy, rental pattern and permitted owner use are different.

2. How much deposit do I need for a holiday let mortgage?

A 75% LTV holiday let mortgage needs 25% equity or deposit, while an 80% LTV mortgage needs 20%. The exact maximum depends on the lender, mortgage product, loan size and property. You also need money for purchase taxes, legal work, furnishing and operating costs.

3. Which building societies offer holiday let mortgages?

Specialist holiday-let routes are currently available from building societies including The Cumberland, Furness Building Society, Leeds Building Society and Principality. Their LTV, income, property, geographical and rental-assessment rules differ.

4. Can I get an 80% LTV holiday let mortgage?

Yes, in some circumstances. Furness Building Society currently publishes holiday-let criteria up to 80% LTV. You must still meet its applicant, income, rental, property and product requirements.

5. Can I stay in a property with a holiday let mortgage?

Some lenders permit personal use, but the limit is lender-specific. Furness currently advertises personal use for up to 90 days per year. Check your own mortgage offer and conditions before staying in the property.

6. Can I use an ordinary buy-to-let mortgage for Airbnb?

Do not assume so. Many ordinary buy-to-let products are designed for longer residential tenancies and may not permit short-term holiday bookings or owner occupation. Tell the lender exactly how the property will be used.

7. How is holiday let mortgage affordability calculated?

Lenders typically use expected holiday rental income and apply a rental coverage or Interest Cover Ratio calculation. They may use high-, mid- and low-season weekly rents and a cautious occupancy assumption. Some building societies also assess the applicant’s personal earned income.

8. Do the old Furnished Holiday Letting tax benefits still apply?

No. The special Furnished Holiday Lettings tax regime was abolished from April 2025. New and existing operators should use the current property-income and tax rules rather than relying on older FHL tax guides.

9. Do I need a licence for a holiday let in Scotland?

Scotland has a mandatory short-term let licensing scheme. A property used for short-term visitor accommodation must meet the applicable licensing rules, and new hosts need the required licence before accepting bookings or guests.

10. Can a first-time holiday let investor get a mortgage?

Potentially yes. The Cumberland explicitly states that it lends to first-time holiday let investors. Other building societies use different applicant rules, so check whether you must already own a residential home or have landlord experience.

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