Serviced accommodation or
Holiday let mortgages.

Every award winning holiday let lender on our panel to ensure Acorn.finance customers get the best funding package in the market.

Whether it’s your first property or you’re growing your portfolio, getting FUNDED right is vital to make your plans come to fruition.

What are the key features of a holiday let mortgage?

  • A holiday let mortgage allows the property to be let for short periods not using an Assured Shorthold Tenancy (AST) Agreement.
  • Most holiday let mortgages allow the owner to use the property for their own holidays (typically for up to 3 months each year, but if you need more or less time than that, let us know and we’ll work with lenders who accept your needs).
  • Holiday let mortgages are effectively commercial mortgage products so as you build experience and have business accounts, the products available to you will increase.
  • First time investors can get a holiday let mortgage and lenders will lend against the projections provided by some of the main chains of booking agents.
  • How you borrow is up to you, we can offer flexibility around the term of your mortgage, repayment or interest only options and fixed or variable rates.
  • Through our international partnerships we’re also able to arrange holiday let mortgages throughout Europe, USA and Canada and many other parts of the world, just contact us for more information.

Your own cottage by the sea?

Wherever your dream holiday home would be, we’ve got the mortgage for you!

And if you prefer the Serviced Accommodation route – our advisors will get you the ideal mortgage to grow your portfolio.

Or a flat in the city?

Wherever your dream holiday home would be, we’ve got the mortgage for you!

And if you prefer the Serviced Accommodation route – our advisors will get you the ideal mortgage to grow your portfolio.

Frequently Asked Questions for Holiday Let Mortgages

Do I need a special Holiday Let Mortgage or can I use a Buy to Let mortgage?

Not telling the truth about your plan for a property is mortgage fraud (remember Peter Mandelson?). It’s highly unlikely that if you commit mortgage fraud you’ll end up in the House of Lords, more likely your name will be placed on the fraud prevention blacklist and you’ll find it impossible to get any sort of mortgage or finance in the future. If you’re letting a property out as a holiday let or serviced accommodation then your customers will be able to find out. If they can, the lender can!

What sort of holiday let mortgages are available?

The range of mortgages available for holiday lets or serviced accommodation can appear more limited to the regular buy to let property investor but there’s still a good range of lenders, with products available for different property types in different locations and with a choice of fixed rates, discounts and standard variable rates available.
Mortgages can cover single properties or larger groups forming holiday parks.

What about mobile homes?

Typically the answer is no – mobile homes don’t provide the security that mortgage lenders require. To be mortgageable properties need to be permanent. Some lenders will provide unsecured loans against mobile homes or it can be possible to arrange secured lending against existing properties to make the purchase.

Do I need certain income to get a holiday let mortgage?

Not necessarily – lenders will often look at your personal circumstances and some of them will assume a certain “base level” of personal income to be met, especially for ex-pat customers or non-UK nationals, but it’s not the case that if you don’t have that minimum income you’ll automatically be rejected, we’ll work with other lenders who are open to your particular circumstances.
As the income from the property will pay the mortgage, that is the first place to look for the affordability.

Does living outside the UK mean I can’t have a holiday let mortgage?

Not at all! We’ve arranged a number of mortgages for UK Ex-Pats and foreign nationals, for many people the holiday let option works well as it allows them a base when they want to visit family or friends in the UK.

What about the tax position of a holiday let?

Tax is taxing! We’d always recommend you speak to your accountant about it, but, in brief;
– A holiday let is a business (different to a buy to let property) so you’ll pay tax on the profit rather than the income.
– You’ll pay Stamp Duty Surcharges (3% and 2%) if you’re purchasing residential property that means you own more than one property or you reside outside the UK.
– Being a business a holiday let will be liable for business rates rather than council tax, that means that your business might be eligible for Business Rates Relief of up to 100% of the bill.
– Capital Gains Tax on the sale of a business asset is 10% (18% if you’re a higher rate tax payer) rather than 28% (as at October 2021)
Do remember that to qualify as a holiday rental business the property must be available to let at least 210 days per year of which at least 105 days must be to commercial customers (not just friends and family). Otherwise it’s a second home!