The holiday let market has boomed since the pandemic, driven by staycation demand and platforms like Airbnb and Booking.com. But financing a holiday let is not the same as standard buy-to-let.\n\nWhat Counts as a Holiday Let — HMRC required the property to be available for letting for at least 210 days per year and actually let for at least 105 days under the old Furnished Holiday Lettings rules. Note: the government abolished the FHL tax regime from April 2025, so holiday lets are now taxed the same as standard rentals, removing the historic tax advantages around mortgage interest relief and capital allowances.\n\nMortgage Options — Holiday let mortgages are a distinct product category. Standard BTL lenders typically do not accept short-term lets. Specialist lenders include Paragon, Kent Reliance, Aldermore, Cumberland Building Society, Furness Building Society, and Foundation Home Loans. Typical terms: 65% to 75% LTV, rates 0.5% to 1% above standard BTL.\n\nIncome Assessment — Lenders use a holiday letting income projection from a local agent or their own internal calculation based on location and property size. The income must typically cover 125% to 145% of mortgage payments at a stressed rate.\n\nRunning Costs — Holiday lets have significantly higher operating costs than standard BTLs. Budget for cleaning between guests, laundry, Wi-Fi, specialist insurance, furnishing wear and tear, platform commission (Airbnb takes 3% to 5%), and council tax or business rates.\n\nPlanning and Licensing — Some councils require planning permission for short-term lets. Cornwall, Lake District, Bath, and several London boroughs have restrictions. Scotland introduced mandatory licensing in 2022, Wales has a similar system. Check before purchasing.\n\nIs It Worth It — A well-located holiday let can generate 8% to 15% gross yield, significantly outperforming standard BTL. But the management burden is heavier, income is seasonal, and void periods in winter can be lengthy.