Holiday and Student Lets

Holiday Lets and Air bnb Buy To Let

Holiday let mortgages are designed for properties rented out to holidaymakers on a short-term basis, typically for a few nights up to several weeks. While some buy to let lenders offer specific holiday let products, others may only finance these types of properties under commercial mortgage terms. The most suitable option depends on your individual circumstances, property type, and long-term goals.

Holiday lets offer landlords a profitable way to diversify their property portfolios in a growing market. With increasing demand for short-term rentals across the UK, investors can benefit from:

• Stronger rental yields – Average yields for holiday lets were 8.46% in 2023, compared to 6.21% for traditional buy-to-lets.

• Flexible use – Enjoy personal use of the property throughout the year (subject to your mortgage terms).

• Comparable rates – Holiday let mortgage rates are often similar to standard buy to let products, especially for borrowers applying in their personal name.

• Up to 75% loan-to-value (LTV) available from most lenders.

As more lenders enter the holiday let market, rates are becoming increasingly competitive. However, eligibility and rates will vary based on your financial profile, letting experience, and the property itself.

Let our team of specialist mortgage brokers help you navigate your options and secure the best possible terms for your investment.

Student Accommodation Buy to Let (HMOs)

Buy-to-let mortgages for student accommodation operate similarly to standard buy-to-let or investment mortgages, with borrowing capacity typically based on the actual or projected rental income generated by the property.

In most cases, student rental properties accommodate multiple tenants, which means lenders will often assess the rental income using criteria aligned with Houses in Multiple Occupation (HMO) standards. This ensures the mortgage reflects the higher occupancy and potential complexities associated with student lettings.

Despite these considerations, many core features remain the same such as the option to structure the mortgage on an interest-only basis making student buy to let an accessible and potentially lucrative investment route for landlords.

In most cases, a minimum deposit or equity of 25% is required. However, at Prestigious Property Finance, we have access to specialist lenders who may consider deposits as low as 15%, subject to individual circumstances.

Additionally, the type of property can influence mortgage eligibility and terms whether it is a converted house or purpose built student accommodation may impact a lender’s assessment.