With summer in full swing and demand for UK staycations remaining strong, holiday let properties continue to present opportunities for borrowers looking to generate income from short-term rentals.
However, holiday let lending can be more complex than standard buy-to-let cases. Factors such as changing regulations, local planning requirements and seasonal rental income patterns mean borrowers often benefit from specialist lending support and careful case assessment.
At Penrith Building Society, our approach is designed to provide flexibility and common-sense underwriting for holiday let applications, helping brokers find solutions for a wide range of client circumstances across the UK.
Holiday Let Criteria Highlights
Our holiday let proposition includes:
- Lending available to individual borrowers
- Properties located across the UK
- Up to 75% loan-to-value (LTV)
- Interest-only options available up to 75% LTV
- Maximum term of 25 years
- Minimum income requirement of £25,000 (£30,000 for expats)
- ICR-based rental assessment, with top slicing considered where appropriate
- Properties must be readily saleable as standard residential dwellings
Understanding the Holiday Let Market
While holiday lets can offer attractive investment opportunities, success often depends on understanding local demand, managing seasonal income fluctuations and taking a long-term view of the investment.
Brokers with clients considering a holiday let purchase or remortgage are encouraged to discuss their requirements with our team, who can provide guidance on available options and lending criteria.
For more information about our holiday let proposition, contact the Intermediary Team at intermediaries@penrithbs.co.uk
