Expat Holiday Let Mortgages
A furnished holiday let isn’t assessed like a standard buy-to-let. Lenders want to see projected income from short lets – weekend stays, weekly bookings, seasonal peaks and troughs – rather than one steady monthly rent figure, and that fundamentally different calculation means only a limited number of lenders offer this kind of finance at all.
Add expat status into the picture and the pool narrows further. Most holiday let lenders are set up for UK-resident borrowers with a UK-based income; overseas income, an overseas correspondence address, and remote applications all take the case outside what a straightforward affordability model can handle. We’ve arranged holiday let finance for expat and non-resident owners since 2008, whether you’re buying a cottage to run through Airbnb and Sykes or refinancing a property you already own.
How Lenders Assess Seasonal, Short-Let Income
A standard buy-to-let mortgage is assessed against a single assured shorthold tenancy rent figure, with lenders typically wanting rental cover of around 125-145% of the mortgage interest payment. A holiday let doesn’t have that single figure – income might be strong in August and quiet in February – so lenders instead want a realistic annualised projection, usually averaged across low, mid and peak season rather than extrapolated from your best fortnight.
That projection is normally supported by one of two things: an independent letting agent’s income estimate for the specific property, or, if the property is already trading, actual booking history and platform statements from the last 12 months. A property with a proven trading record is generally easier to place than a new purchase relying entirely on a projection, though both are financeable.
Which Lenders Consider Expat Holiday Let Cases
The specialist holiday let lending panel is small to begin with, and only a subset of that panel will also consider applicants living overseas. Lenders active in this space include names such as Paragon, Suffolk Building Society, Mansfield Building Society, Cambridge & Counties, and a handful of private banks – most operating through intermediaries only, so direct approaches rarely get you the full picture of what’s available. Appetite and criteria shift regularly, which is precisely why we place these cases through the full panel rather than a single relationship.
Deposit and Loan-to-Value
Expect to need a minimum of 25% deposit, with 30-35% giving you access to a noticeably wider set of lenders and better pricing. Foreign nationals, or income in less commonly assessed currencies, can push this toward the upper end. As with any expat case, the source of the deposit needs a clear paper trail – lenders and their compliance teams will want to see where the funds originated and how they were transferred into sterling.
Personal Name or Limited Company (SPV) Ownership
Holiday lets can be purchased in a personal name or through a UK limited company / special purpose vehicle (SPV). Company ownership has become more common among expat holiday let buyers, partly because it keeps mortgage interest fully deductible against rental income at the company level, which residential-rate taxpayers no longer get automatically as individuals. It suits buyers planning to hold the property for the medium-to-long term or build a small portfolio, though it isn’t automatically the right structure for every buyer – it depends on your wider tax position. Our UK Limited Company Mortgages and SPV Share Purchase Mortgage pages cover the structuring in more detail.
The Furnished Holiday Let Tax Change You Need to Know About
The Furnished Holiday Lettings (FHL) tax regime, which gave qualifying holiday lets favourable treatment compared with standard rental property, was abolished from 6 April 2025. If you’ve read older guidance – including some still live on other broker sites – be aware it may now be out of date. In practice this means holiday lets are now taxed broadly the same as any other residential letting business: full mortgage interest relief at the borrower’s marginal rate is no longer automatic (it’s restricted to the basic-rate deduction that applies to standard buy-to-let), the capital allowances previously available on furniture and equipment have been withdrawn for new expenditure, profits no longer count as relevant earnings for pension contribution purposes, and the capital gains reliefs (rollover relief, Business Asset Disposal Relief) that qualifying FHLs enjoyed on sale no longer apply going forward. None of this makes a holiday let purchase a bad idea – the rental income potential and personal-use flexibility remain real advantages – but the tax maths behind the decision has changed, and we’d always recommend a conversation with an accountant familiar with the post-April 2025 rules alongside arranging the finance.
Stamp Duty Considerations
A UK holiday let purchased as an additional property attracts the standard second-home surcharge on top of normal Stamp Duty Land Tax rates. If you’re buying as a non-UK resident, a further 2% non-resident surcharge applies on top of that. Both need to be budgeted alongside your deposit and legal costs – our Non-UK Resident Mortgages page sets out the current SDLT surcharges in full.
Refinancing an Existing Holiday Let
If you already own a UK holiday let and want to release equity, switch to a better rate, or move from personal name into a company structure, that’s a remortgage rather than a purchase, and the same lender panel and income-assessment approach broadly applies. Our Expat Holiday Let Remortgage page covers that route specifically.
What We Typically Arrange
- Purchases of furnished holiday lets in England, Scotland and Wales
- Refinancing existing holiday let properties, including releasing equity
- Personal name or limited company/SPV ownership structures
- Cases with proven trading history and cases relying on a fresh income projection
Our Fees
£295 application fee, 1% completion fee.
Frequently Asked Questions
Does the property need a trading history before I can get finance?
Not necessarily, though an existing booking history makes the lender’s income projection more straightforward.
How is seasonal income actually calculated?
Usually averaged across the year using realistic occupancy assumptions and rental cover requirements, rather than based on your busiest weeks.
Can I buy a holiday let through a limited company?
Yes, this is a common structure and we regularly arrange it – it also affects how mortgage interest is treated for tax purposes.
Has the tax treatment of holiday lets changed recently?
Yes, significantly. The Furnished Holiday Lettings regime was abolished from 6 April 2025, removing the enhanced mortgage interest relief, capital allowances, pension-earnings treatment and CGT reliefs that previously applied. Speak to an accountant about how this affects your specific position.
Do I pay extra stamp duty as an expat buying a holiday let?
Usually yes – the standard second-home surcharge applies, plus a 2% non-resident surcharge if you’re buying from overseas.
How long does a holiday let mortgage or remortgage typically take?
Budget 8-12 weeks, allowing extra time for the more detailed income assessment lenders require.
Get in touch with the property details and any existing letting history, and we’ll match you to the right lender.
