Holiday let mortgages for the perfect staycation rental property

Holiday let mortgages - Start your journey right here

No arrangement fees

  • No arrangement or application fees on our variable rate holiday let mortgages
  • Free valuation included up to £800k across all our mortgages
  • Your property can be marketed for rent through AirBnB type platforms
  • Please see below for full holiday let mortgage product detail

We base affordability on projected average rental income (min income) over 12 months

We welcome mortgage applications for properties that will be listed on Airbnb type sites

Our friendly mortgage team will work out your eligibility

Look no further to find out if you are eligible for a Holiday Let mortgage. Complete the following form or give us a call directly - we'd love to be part of your holiday home journey.

Good to know: our Holiday Let mortgages are for everyone, not just teachers. Please note that Holiday Let mortgages are not regulated by the FCA.

Please note: Mortgages are secured on your holiday let property. You could lose your property if you do not keep up payments on your mortgage. Terms and conditions apply. Mortgages are subject to underwriting and criteria. Please contact us for full details.

We are experienced Holiday Let lenders - book a quick call with our team to see if you’re eligible

Please note our office is open between 9am and 5pm Monday to Friday. Evening and weekend appointments by prior arrangement.

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Holiday let variable rate mortgages

Deposit % Term Initial interest rate Follow on
rate
Overall cost for
comparison
Max LTV Arrangement
fee
Application
fee
25% 2 years 6.14% 9.49%
after 2 years
9.2% APRC 75.0% £0.00 £0.00
 

Holiday let variable rate remortgages

Deposit % Term Initial interest rate Follow on
rate
Overall cost for
comparison
Max LTV Arrangement
fee
Application
fee
25% 2 years 6.14% 9.49%
after 2 years
9.2% APRC 75.0% £0.00 £0.00
 

Holiday let fixed rate mortgages

Deposit % Term Initial interest rate Follow on
rate
Overall cost for
comparison
Max LTV Arrangement
fee
Application
fee
25% 2 years 5.79% 9.49%
after 2 years
9.0% APRC 75.0% £999.00 £199.00
25% 4 years 5.39% 9.49%
after 4 years
8.3% APRC 75.0% £999.00 £199.00
 

Holiday let fixed rate remortgages

Deposit % Term Initial interest rate Follow on
rate
Overall cost for
comparison
Max LTV Arrangement
fee
Application
fee
25% 2 years 5.79% 9.49%
after 2 years
9.0% APRC 75.0% £999.00 £199.00
25% 4 years 5.39% 9.49%
after 4 years
8.3% APRC 75.0% £999.00 £199.00

Representative example

A mortgage of £206,550.00 over 27 years initially on a discounted variable rate of 6.14% (equal to a 3.35% discount off our SVR) for 2 years and then our Standard Variable Rate, currently 9.49%, for the remaining term, would require 24 monthly payments of £1056.85 and 300 monthly payments of £1624.58.

The total amount payable would be £719,433.23 made up of the loan amount plus interest (£512,773.23) with a Funds Transfer Fee of £25.00 and a Mortgage Exit Fee of £85.00. 

The overall cost for comparison is 9.2% APRC representative.

Please note: the representative example is for holiday let property purchase only. For remortgage applications, certain fees do not apply. Please contact us for details.

This information does not contain all of the details you need to choose a mortgage. Make sure that you read the separate Information Sheet before you make a decision. For full details, please call our friendly team on 0800 378 669.

You might be wondering why a teacher specific building society offers holiday let mortgages to borrowers of other professions. It’s a good question. There are two reasons. Firstly, (like all lenders) its our duty to keep both our business and your money safe, and to do that we follow regulator rules around how many of our mortgages are to borrowers with small deposits and how many are to people with much bigger deposits. Offering holiday let mortgages (requiring at least a 25% deposit) balances out the small deposit mortgages we offer to teachers. Secondly, we think having a specialism – like lending to teachers – is a really good thing. So instead of offering our lowest deposit mortgages to the masses, we decided to apply our specialist knowledge to the holiday let market.

We:

• Lend up to £1 million at 75% Loan To Value.

• Calculate lending based on projected average rental income. For remortgages, we use 100% of rental received.

• Offer free property valuations up to £800k.

• Support borrowers who plan to market their home for rent through AirBnB type platforms.

• Allow personal use of the property for up to 2 months per 12 month period.

You’ll need

• A 25% deposit.

• A minimum income of £25,000 or for joint applications a combined income of £40k.

• To have fully repaid the mortgage by the age of 83.

Our current holiday let mortgage rates are listed below – for more information get in contact with our friendly team.

Holiday let mortgages FAQ's

A holiday let mortgage is specifically designed for a property that will be let out on a short term basis to holidaymakers in return for rental income. It differs from a buy to let mortgage which is for properties where the landlord receives a regular rental income from a tenant. Holiday let mortgages allow the owner to use the property themselves, for up to 2 months in every 12 month period. Both types of mortgage are not regulated by the FCA. 

You will need:

  • A deposit of at least 25% of the property’s value
  • One applicant must earn a minimum income of £25,000 or joint applicants need to earn £40,000 per year
  • To own a main residential home
  • The property to be located in a typical, coastal or country, holiday let location
  • A rental assessment - For purchase applications, we’ll look at the projected rental income as part of our assessment, whereas remortgage applications are assessed on the rental received over the last 12 months. One of our mortgage advisors will be happy to give you more information on how we assess your application

With Teachers Building Society holiday let properties that will be marketed through Airbnb type platforms are welcomed.

To secure a holiday let mortgage you’ll need a deposit of at least 25% of the value of the property. You’ll also need to make monthly repayments on your holiday let mortgage, as you would for a standard residential property, so make sure you plan for periods where you may have holiday let voids as your mortgage payment will still need to be made.

Other things to consider are the costs of insurance, taxation, marketing, maintenance and repair of your property plus any furnishings you need to purchase to make the home suitable for paying guests. You might also plan to use a specialist cleaning company to keep the property up to standard between visitors – costs can vary based on region and property size so investigate with a local provider.

The biggest difference is the length of tenancy. For holiday home mortgage properties guests will be staying for short periods (up to a maximum of one month). Whereas, a buy to let will be for a longer, continuous tenancy to the same person/family.

The first step in arranging a holiday let mortgage is to talk to one of our expert team. You can either give us a call on 0800 378669 or complete this form and one of our team will give you a call back at a time convenient to you.

Whether you’re a big fan of staycations personally and looking to invest in a high demand area, or simply looking to purchase a property from which you can receive rental income from short-term lettings the benefits are clear:

  • The long term trend for bricks and mortar is a rise in value, offering an opportunity for capital gains over the period you own the property
  • Holiday let properties enable regular receipt of income -  whilst location and season will impact what you can charge, income can be higher than from a long term buy to let home
  • You can use the property yourself to enjoy staycations: Teachers Building Society holiday let mortgages allocate 2 months in every 12 month period for owner use 

At Teachers Building Society holiday let mortgages allow owners to self-occupy the property for up to 2 months in every 12 month period, plenty of time to make the most of your investment with family and friends. 

Teachers Building Society welcomes applications for holiday let mortgages where the property will be rented out via an Airbnb type platform.

Platforms like Airbnb have certain standards/criteria which need to be met for a property to be listed – we recommend researching these directly with the platform. 

The short answer is no.

Although we are a teacher specific building society and our residential lending requires one applicant to hold a teacher profession connection, we are happy to consider holiday let applications from any profession. 

 

Lending Criteria Description
LocationAreas associated with a demand for Holiday Let properties
Rental
Assessment
Purchase

Average of low, medium & high season weekly rates x 30 - Evidenced by Letting Agent Confirmation

Remortgage

Based on 100% of actual rental receipts over the last 12 months, evidenced by Letting Agent confirmation and/or bank statements

Where less than 12 months rental history based on purchase assessment

 RestrictionsNot available for properties on holiday parks or which have restrictive usage covenants such as a holiday let covenant. 
 MarketingProperty can be marketed for rent through AirBnB type platforms.