Holiday Let 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. Also available to Limited Companies. 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.

Get an idea of how much you can borrow with our affordability calculator. The calculator will work out the maximum amount you could borrow by using a 5 year fixed rate to calculate the highest mortgage possible. Where a 5-year fixed rate is not available, the lowest rate will be used, stressed at +2%. Please contact the team to discuss your specific circumstances.

Mortgages are secured against your property. You could lose your property if you do not keep up payments on your mortgage.

Here are some Frequently Asked Questions about Holiday Let mortgages.

Affordability calculator

Find out how much you can borrow with our affordability calculators.

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Monthly payments calculator

Use the calculator to find out what your monthly payments might be based on the mortgage product and the type and term of your borrowing.

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Mortgage details

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This is the maximum amount based on the information you provided. Your mortgage adviser will take you through the application process and will calculate the amount you can afford to borrow based on your income after the deduction of those expenses and commitments. Further restrictions may apply for specialist products.

Variable rate Holiday Let mortgages

Our Standard Variable Rate (SVR) is currently 7.99% variable (effective from January 1st for existing customers). 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

Holiday Let variable for 2 years

Initial rate

5.69%

Discount from SVR

2.30%

Overall cost for comparison

7.9% APRC

Max LTV %

75%

Product fee

£999

Mortgage repayment

£XXX.xx per month

Calculate

Product name

Ltd Co Holiday Let variable for 2 years

Initial rate

5.69%

Discount from SVR

2.30%

Overall cost for comparison

8.0% APRC

Max LTV %

75%

Product fee

£1,499

Mortgage repayment

£XXX.xx per month

Calculate

Fixed rate mortgages

The mortgages listed below move on to our Standard Variable Rate (SVR), 7.99% variable after the initial rate period (effective from January 1st for existing customers).

Product name

Holiday Let fixed for 5 years

Initial rate

5.89%

Overall cost for comparison

7.5% APRC

Max LTV %

75%

Product fee

£999

Mortgage repayment

£XXX.xx per month

Calculate

Product name

Holiday Let fixed for 2 years

Initial rate

6.25%

Overall cost for comparison

8.1% APRC

Max LTV %

75%

Product fee

£999

Mortgage repayment

£XXX.xx per month

Calculate

Product name

Ltd Company Holiday Let fixed for 5 years

Initial rate

5.89%

Overall cost for comparison

7.6% APRC

Max LTV %

75%

Product fee

£1,499

Mortgage repayment

£XXX.xx per month

Calculate

Product name

Ltd Company Holiday Let fixed for 2 years

Initial rate

6.25%

Overall cost for comparison

8.1% APRC

Max LTV %

75%

Product fee

£1,499

Mortgage repayment

£XXX.xx per month

Calculate

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 Mainland Scotland, Shetland, Orkney, Arran, Bute, Skye, Harris & Lewis, Mull and Islay and be of standard construction. No properties on sites. Maximum 5 bedrooms.
All applicants:	Must be a UK resident. 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.

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 Mainland Scotland, Shetland, Orkney, Arran, Bute, Skye, Harris & Lewis, Mull and Islay and be of standard construction. No properties on sites. Maximum 5 bedrooms.

All applicants:

Must be a UK resident. 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.

Holiday Let mortgages

Variable rate Holiday Let mortgages

Fixed rate mortgages

Representative example

Lending Criteria and Information

Customer feedback

How to apply

Holiday Let mortgages

Variable rate Holiday Let mortgages

Fixed rate mortgages

Representative example

Lending Criteria and Information

Customer feedback

How to apply

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