Holiday Let mortgages

Please note: Only Limited Company Holiday Let mortgages are available for Intermediary distribution. Individual Holiday Let products can be accessed via our packaging partner, Manor Mortgages.

Bath Building Society is one of only a few lenders to offer holiday let mortgages for people who want to buy a property to rent as a holiday let. Limited Company products are also available. We will consider remortgaging an existing holiday let property for home improvements or purchase of another property. Personal use of the property is permitted for up to 60 days and we will allow the property to be let out as an Airbnb during periods when the property is unoccupied.

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Variable mortgages

Our Standard Variable Rate (SVR) is currently 8.19% (variable). Please note from 1st January 2025 the SVR will be 7.99% (variable). There may be a limit on how low your interest rate can fall. This is called an ‘interest rate floor’. The interest rate floor applicable to your loan will be specified in your loan documentation.

Product name

Ltd Co Holiday Let variable for 2 years

Product code: HDD030

Initial rate

6.19%

Discount from SVR

Overall cost for comparison

8.3% APRC

Max LTV %

75%

Product fee

£1,499

Fixed rate mortgages

The mortgages listed below move on to our Standard Variable Rate (SVR), 8.19% (variable) after the initial rate period. Please note from 1st January 2025 the SVR will be 7.99% (variable).

Product name

Ltd Company Holiday Let fixed for 5 years

Product code: HDF064

Initial rate

5.89%

Overall cost for comparison

7.7% APRC

Max LTV %

75%

Product fee

£1,499

Product name

Ltd Company Holiday Let fixed for 2 years

Product code: HDF063

Initial rate

6.25%

Overall cost for comparison

8.3% APRC

Max LTV %

75%

Product fee

£1,499

Proc Fee
We will pay a gross procuration fee of 0.4% on all new introduced business and 0.3% on all product transfers. The fee is usually paid within five working days following completion. Procuration fees may vary for our recognised Clubs & Packagers.
Repayment type
Interest only and repayment options available
Key features
- Availability – Purchase & Remortgage up to 75% Loan To Value (LTV). Minimum deposit of 25% required.
- Flexibility – Overpayments up to 20% of the capital balance as at 1st January are allowed in each calendar year without penalty.
- Portable.
Early repayment
For full repayment of a 5 year fixed product, you will pay 3% of the outstanding balance in years 1, 2, 3 & 4; 2% in year 5, plus a Closing Administration Fee (currently £100).
For overpayments of a 5 year fixed product, you will pay 3% on any amount exceeding your 20% limit in year 1, 2, 3 & 4, 2% in year 5.
For full repayment of a 2 year fixed or discounted product, you will pay 3% of the outstanding balance in the first year and 2% in the second year, plus a Closing Administration Fee (currently £100).
For overpayments of a 2 year fixed or discounted product, you will pay 3% on any amount exceeding your 20% limit in the first year and 2% in the second year.
Product fees
- Valuation fee.
- Product fee £999 for individual applications and £1,499 for limited company applications.

Lending criteria

Lending Criteria and Information

Loan:	Size: Minimum £50,000, Maximum £500,000 at 75% and £500,000 to £1,000,000 at 70% Term: Minimum 5 years, Maximum 40 years. Repayment Type: Capital Repayment, Interest Only
Property:	Minimum value is £100,000. The property must be in England, Wales or Scotland and be of standard construction. No properties on sites. Maximum 5 bedrooms.
All applicants:	Must be UK residents. Minimum age 21. No maximum age, subject to income in retirement.
Income:	Household income must be at least £30,000.
Rental:	The calculation is based on the actual or expected rental on an AST basis. Rent must cover 125% of the ‘stressed mortgage payments’ for basic rate tax payers, or 145% for higher rate tax payers. The stressed mortgage payment is based on the product rate +2% or 5.5% whichever is higher.
Underwriting:	We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk. We will consider holiday lets throughout England and Wales subject to acceptance by the Society’s valuer.
Other information	You must be able to service your existing commitments from income without recourse to the rent from this property. If you have a Buy to Let or Holiday Let portfolio, you will need to demonstrate that this is self-funding.