How Much Deposit Do You Need for a Holiday Let Mortgage
Most lenders ask for a 25 to 30% deposit on a holiday let mortgage, which means a maximum loan-to-value of 70 to 75%. That is higher than the deposit many first-time buyers put down, and it reflects the lender's view that short-stay income is less predictable than a long tenancy.
The exact deposit depends on the property and the lender. A property in a proven holiday location with strong occupancy data may qualify at the lower end, while an unusual property or a new letting market may need more. Your personal income and credit history also affect the rate and the maximum loan.
On a £300,000 property, a 30% deposit is £90,000 and the loan is £210,000. Budget beyond the deposit as well: stamp duty, legal fees, furnishing and a contingency for the first quiet season all need cash, and lenders like to see a buffer for empty weeks.
- Deposits are commonly 25 to 30% for holiday lets.
- Strong location and occupancy evidence can help at the lower end.
- Budget for fees, furnishing and a quiet-season buffer on top.
Try the free calculator to work out your own figures in seconds.