You are here: Home - News -

Holiday let mortgage options recover in six months – Moneyfacts

  • 06/04/2021
  • 0
Holiday let mortgage options recover in six months – Moneyfacts
Mortgage options for borrowers seeking holiday lets have increased by 45 per cent in six months, almost returning to levels seen a year ago, data from Moneyfacts shows.


Since October, the number of deals has risen from 103 to 149, and 21 lenders are offering relevant mortgages compared to 17. 

In contrast to what was available before the property market shut down, there were 162 products on the market in March and 20 lenders providing mortgages for holiday let. 

The typical holiday let mortgage is more expensive than last year too, with the average rate currently 3.95 per cent compared to 3.37 per cent in March.

Overall, the increase in choice has coincided with a rise in demand for holiday let amid travel restrictions due to the pandemic.  

Recent research from Hodge Bank showed of those purchasing a holiday home, 65 per cent had taken out a new holiday let specific mortgage. Meanwhile, 35 per cent remortgaged their existing property to finance a holiday home. 

Rachel Springall, spokesperson at, said: “Consumers may have taken some time to reflect on staycations in light of uncertainties surrounding international travel and how a holiday let could be a worthy investment. 

“Supply and demand may well be a key issue in 2021 for investors who feel staycations are here to stay awhile yet.  

She added: “Any lack of holiday home opportunities will come as frustrating news for investors considering the return of holiday let deals on to the market, especially as sales figures nationally are rising and some consumers have more disposable income from lockdown and are therefore ready to invest. 

“Clearly, for any opportunities that prospective borrowers are contemplating, it is wise they approach an independent qualified financial adviser to go through the deals currently available and to get some valuable insight into the workings of a holiday let.” 

There are 0 Comment(s)

You may also be interested in