Holiday Let vs Buy-to-Let Mortgages, Understanding the Difference

If you’re considering investing in property, it’s worth understanding how holiday lets and long-term rentals differ, especially when it comes to finance, flexibility and potential returns.

In recent years, many investors have been considering the holiday letting market, particularly in Cornwall, where visitor demand remains strong for the majority of the year. Here’s what sets a holiday let mortgage apart from a traditional buy-to-let product.

Flexibility for Personal Use

One of the biggest advantages of a holiday let mortgage is that you can enjoy the property yourself for part of the year. Lenders usually allow a set number of weeks for personal use — perfect if you want a combination of investment and lifestyle.

By contrast, buy-to-let mortgages are strictly for long-term tenants, so personal stays aren’t permitted.

How Lenders Assess Income

For buy-to-let properties, lenders base affordability on monthly rent under a standard tenancy agreement. Holiday let lenders, however, look at seasonal income potential — assessing projected weekly rates across low, mid and high seasons. This often means your borrowing potential can be higher, provided you can supply credible income projections from a recognised local agent.

That’s where we come in. Cornish Cottages can provide no-obligation income estimates for properties being considered as holiday lets. These figures are often essential for securing a holiday let mortgage.

Specialist Lenders, Competitive Market

While there are fewer holiday let lenders compared with buy-to-let, the number is growing as the market expands. Many lenders now recognise the strong performance of UK tourism areas like Cornwall and are offering increasingly competitive products.

Location Matters

Holiday let mortgages are only available in established tourism areas with proven visitor demand — coastal regions like Cornwall are ideal examples. Lenders want to see consistent holiday trade, making local insight and agent support invaluable.

When Holiday Letting Makes Sense

Choosing a holiday let may be the better fit if:

• You want to use the property personally at any time of the year.
• The location has strong tourism appeal and reliable seasonal demand.
• You can demonstrate realistic income potential through a local letting agency.

Please note: This article is for general information only and does not constitute financial or mortgage advice.

Considering a holiday let investment?

At Cornish Cottages, we’re happy to offer free, no-obligation advice on potential properties for sale — including honest feedback on suitability for letting and estimated annual income figures for mortgage applications.

No pressure, no hard sell, just honest guidance from people who care about Cornwall and its homes.

📞 01326 240 333

✉ Enquiries@CornishCottages.co.uk

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