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Big boost in holiday let mortgage deals available to landlords

Independent mortgage market monitor Moneyfacts says there’s been a big increase in choice available to landlords wanting to enter the holiday lets sector.

Indeed, the number of mortgage options for borrowers looking at holiday lets have more than doubled since August 2020: there are now 186 options available compared to 74.

More lenders have entered the market - there are now 25 different brands versus 14 in August 2020, the majority of which are currently building societies.


Moneyfacts’ finance spokesperson Rachel Springall says:  “It’s positive to see a rise in holiday let product choice for landlords over the past few months, but the market is still relatively niche as there are less than 200 deals available. 

“As the demand for staycations remains evident, it would not be too surprising to see more growth in this market in the months to come. In August 2020 only 14 lenders were offering a buy to let mortgage available to holiday let, whereas today there are 25 and many of these are building societies.

“Whether the appetite for staycations falls into 2022 is unknown but for the moment it's evident landlords are taking advantage of the opportunity to earn an income through holiday lets. 

“Those who may have saved some additional disposable income during the UK lockdown, or are looking for alternative investment opportunities, may then be keen to get involved. Undertaking thorough research into popular locations, weighing up tax benefits, reading up on rules regarding residency periods and other potential expenses outside of utility bills can feel daunting, so seeking advice before entering an arrangement is wise.”



The number of holiday let companies set up, chiefly by landlords, between January and June this year was an increase of 83 per cent versus the whole of 2020 and 119 per cent more than in 2019 according to Hamptons.

The mix of uncertainties this year surrounding international travel has caused demand for holiday lets and, according to Hamptons, there were 1,404 new holiday let incorporations in England, Scotland and Wales between January and the end of June 2021. 

The agency recorded this as the highest number since its records began in 2007.

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