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Holiday Let Lending Criteria A-Z

Our criteria is listed in alphabetical order to enable you to quickly find the information that you require.
If you do need further information then please contact our team on 0808 281 9309

Borrower Occupation

We allow borrowers to occupy the property themselves for up to 90 days a year.

Credit History

CCJ’s/Defaults with an aggregate total of £500 or less, registered over 3 years ago and satisfied for at least 6 months can be considered.

Bankruptcy - discharged more than 6 years ago and no adverse credit within last 3 years will be considered on full application.

IVAs/Trust Deed - Registered over 6 years ago, must have been completed over 3 years ago, no adverse credit within last 3 years and satisfactory explanation will be considered on full application.

Repossession/voluntary surrender of property - not acceptable.

One missed payment on no more than one communication supplier, credit card, mail order or utility bill for no more than one month, can be considered providing the account has been brought up to date and a satisfactory explanation is provided.

No more than one over limit position on credit cards or current accounts during the last 12 months, which should have now been rectified.

Debt Consolidation

Capital Raising - 75% max £500,000 (debt consolidations limited to 30% of property value). Allowed once in the lifetime of the mortgage


Personal savings.

Non repayable gift from family member.

Sale/remortgage of existing property.


Where there are concerns about the external wall construction (cladding) for all flats then the valuer 
needs to obtain a EWS1 form which must be completed by a suitably qualified person, only options A1 and A2 are acceptable.


Applicants must be in permanent full or part time employment and continuously employed for the last 6 months.

Applicants must not be under notice of termination of employment or notice of redundancy.

Employment - short term and fixed term contracts

Fixed-term contracts are acceptable where the applicant is currently on a 12 month contract and has at least 6 months remaining or evidence of a new/renewed 12 month contract must be provided, preferably in the same line of work.

First Time Buyers

Our Holiday Home mortgages are currently only for applicants who own their residential home. We do welcome applications from First Time Landlords though.

First Time Landlords

First Time Landlords are accepted who own their own residential home.

Foster Parents

Only the placement income / fee element of the statement, which excludes maintenance payments, 
payments in respect of travel, clothing, Christmas etc., can be taken into account for mortgage purposes

Ground Rent

Ground Rent that exceeds £250 per annum outside London and £1000 per annum inside London is not acceptable.


Income taken at 100%

Basic annual income.

Regular dividends.

Occupational pension, private and state pension.

SIPPS (Self-Invested Personal Pensions).

Car Allowance.

Large Town Allowance.

Housing allowances (police officers).

Placement Income received by Foster Carers.

Teachers Learning Responsibilities (TLR).

Guaranteed Overtime.

Guaranteed Bonuses.

Guaranteed Shift Allowances.

Income taken at 50%

Regular overtime, Shift Allowances, Bonuses.


Rental income (unencumbered/mortgage free property).

Maintenance confirmed by Court Order or 6 months track record.

Secondary income (continuous 12 months).

Working Family Tax Credit.

Income from Trust Funds/Investments – Evidence will be required via an Accountant or last 2 years HMRC Tax Calculations & Tax Overviews.

Dividend income received, where the applicant is not a director of the company.

Income (minimum)

£20,000 minimum income is required (single or joint) 

Income (retirement)

Must be in receipt of pension income to meet the minimum income requirement.

Let to Buy

Standard Holiday Let criteria will apply.

Letting Agents

A holiday letting agent must be in place. The property must be rented under a Licence Agreement.  AirBnB's, daily rentals and ASTs are excluded.

Loan to Value

Capital Raising - 75% max £500,000 (debt consolidations limited to 30% of property value).

Loan type

Holiday let 


England (Including Isle of Wight) & Wales.

Maternity/Paternity Leave

Where an applicant is currently on or going on maternity/paternity leave, confirmation is required from the applicant of their intention to return to work on a full-time/part-time basis.

Maximum Age

The term of the mortgage must not extend beyond the 90th birthday of the oldest borrower.

Maximum Loan

Capital Raising - 75% max £500,000 (debt consolidations limited to 30% of property value)

Maximum Portfolio

Up to 3 properties.
Portfolio lending is not permitted on holiday lets

Minimum Age


Minimum Income

£20,000 minimum income is required (single or joint) 

Minimum Loan


Minimum Property Value


Minimum/Maximum Term

5 years - 40 years.

New Build Warranties

Any property which has been built / converted within the last 10 years must hold an acceptable guarantee / certificate

Acceptable guarantee/certificates include:

NHBC Certificate

Zurich Municipal Policy

Protek Home Warranty

Premier Guarantee

Checkmate - Castle 10

Architects Completion Certificate

Build Zone

Local Authority Building Control (LABC New Home Warranty)

Building Life Plans


One Guarantee Ltd

Number of applicants

Max 4 – we will consider the two highest incomes only.

Pay Day Loans

Applicants who have taken out a pay day loan within the last three years are not acceptable.

Portfolio Buy to Lets

Not available on Holiday Lets

Property (Minimum Value)


Property - Acceptable Security

Properties permanently affixed to land, which are not mentioned in the unacceptable security section, are suitable security for mortgage lending subject to confirmation from the valuation report.

Must be a standard residential furnished property that is suitable for owner occupation and has no title, local or occupancy restrictions. Relevant planning consents must be in place. Leasehold properties will only be considered where the lease explicitly permits short-term letting or Holiday Let activity.

Must qualify as a furnished Holiday Let under HM Revenue & Customs requirements.

Property - Unacceptable Security

Lending on holiday parks, complexes, B&Bs, and Airbnb is not permitted.

Non standard construction. This also includes Laing Easiform/Wimpey No Fines or similar construction types.

System built properties registered under the Housing Defects Act 1984.

Flying freeholds over 15%.

Properties with residential restrictions.

Properties without a kitchen, wc and bathroom.

Properties with agricultural restrictions, farms and small holdings.

Properties with more than 5 acres of land.

Live/Work Units.

Houses of Multiple Occupancy (HMO).

Properties adjacent to or above retail outlets including: Fast Food/Take Aways, Wine Bar/Bistro, Public Houses, Off Licence, Betting Shops, Dry Cleaners, Petrol Stations.

Freehold Flats or Maisonettes.

Ex-Local Authority/Housing Association Flats or Maisonettes.

Flats in blocks with shared walkway access.

Flats with cladding unless an EWS1 form is supplied which confirms that they are rated A1 or A2.

Leasehold properties with less than 75 years remaining on the lease at the end of the mortgage term.

Properties which have internal door locks.

Properties which are owned by the current owner or current vendor for less than 6 months.

Properties which are not ready for immediate occupation.

Properties which are affected by progressive structural movement, dry rot, Japanese Knot Weed or contaminated land.

Properties listed as defective under the 1984 & 1985 Housing Acts unless rebuilt to NHBC Standards and with appropriate guarantees.

Properties in which High Alumina Cement has been used in the construction.

Prefabricated buildings and unrepaired PRC constructions.

Properties with an anticipated life span of less than 25 years beyond the end of the mortgage.

Flats in blocks of more than 6 storeys, basements/underground parking count as 1 storey.

Steel framed structures built prior to 2000.

Studio flats where the LTV is greater than 75%.

BTL properties with an EPC rating of F or G.

Tyneside Flats.

Property Value

Minimum property value £150,000.00

Rental Calculation

We assess Holiday Let affordability using an average of the high, mid and low expected seasonal rental income. A reputable holiday letting agency must provide confirmation in writing.

• The letting agent should confirm in writing a high, mid and low expected seasonal rate. We’ll then take an average of these seasons over a 30 week period to calculate the annual rental income.

• Agent’s letting fees should be deducted (or assumed as being 20% of gross rents if not available or confirmed).

• The net annual rental income must provide a minimum of 140% rental coverage based on the rate of 7.50%. For like-for-like remortgages the net annual rental income must provide a minimum of 125% rental coverage based on the rate of 6.50%

• For Existing Holiday Let: Either existing trading figures in the form of certified accounts, a letter from the holiday letting agent confirming gross annual income for last 2 years, or SA100 tax document can be used.

Repayment Type


Interest Only

Part & Part


UK or EU Citizens with settled status.

Non UK or Non EU citizens must have been residing in the UK for the last 2 years and have non-conditional and permanent right to reside.

Expatriates are not acceptable.

Retirement Income

Must be in receipt of pension income to meet the minimum income requirement.

Self Employment

Minimum trading period is 2 years.

An average income over the last two years will be assessed or the latest income will be applied if lower. Income is defined as:

Sole Traders and Partners - applicant’s share of the net profit.

Directors of limited companies (25% or greater shareholding) - applicant’s salary/remuneration and dividends.

Solar Panels

Solar panels will be considered subject to the Valuer’s recommendations. 
Where the panels are leased, a copy of the lease documentation will be required for submission with the application for approval by the Society.  The lease must contain agreement for removal of the panels, at no cost to the Society, should the 
Society take the property into possession.


Freehold (houses only).
Leasehold properties must have at least 75 years remaining on the lease at the end of the mortgage term.  Leasehold properties will only be considered where the lease explicitly permits short-term letting or holiday let activity.

Top Slicing

Not available on Holiday Lets

Unacceptable Lending

Borrowers occupying the property for more than 90 days a years

Sale and rent back.


Properties being purchased from the applicant’s own business.

Properties that require items of major structural repair e.g. structural defects, electrics, drains. trees.

Remortgage applications where the applicant has not owned the property for six months.

Capital raising for business or investment purposes or to fund living costs.

Bridging finance.

Applicants who have taken out a pay day loan within the last three years.


Foreign Currency Loans.

Properties with EPC rating of F and G.

Zero Hours Contracts

The Society will consider zero hour contracts as an acceptable employment type on the following 
• Restricted to stable, skilled/semi-skilled industries where employment opportunities are 
stable – refer to the Society for acceptable industries.
• Where the income is not the primary income i.e there must be another employed/self-employed/pension income, which is higher. This does not have to be a second job.
• The application is subject to maximum LTV of 80%.
• The applicant must have been employed in the same type of employment/industry for the last two years.