Holiday home mortgages in the UK: second homes, holiday lets and lodges

You can get a mortgage for a holiday home in the UK, but the type depends on how you'll use it. If it's mainly for you and your family, you'll usually need a second-home mortgage, assessed on your income. If you'll let it to paying guests, you'll need a holiday let mortgage, assessed mainly on the rent it can earn. Lodges and caravans on holiday parks are different again: most can't be bought with a mortgage at all.

Updated on 17 September 2026 for current tax rules, council tax premiums and short-term let registration.

Holiday let mortgage deposit

25%+

Most lenders ask for at least 25%, and some want 30% or more

Stamp duty surcharge (England)

5%

Extra on top of normal rates for most additional homes, since 31 October 2024

Second home or holiday let: which mortgage do you need?

Lenders care about who will stay in the property. Get this right first: the wrong type of mortgage can mean a declined application or a breach of your terms.

Which route fits your holiday home?

The main question is how the property will be used

A mortgage on a property you let to holidaymakers is often not regulated by the Financial Conduct Authority. If you or your family will use it as a home for a significant part of the time, the loan may be regulated. Whether yours is regulated depends on your circumstances and the purpose of the loan.

Second-home mortgage vs holiday let mortgage vs remortgaging

Some buyers borrow more against their main home instead, to fund a bigger deposit or buy outright. Here's how the three options compare.

Raising money on your main home may mean a lower rate, but it puts more debt against the home you live in and could trigger an early repayment charge. Our remortgage advisers can compare the options.

How much deposit do you need for a holiday home?

For a holiday let mortgage, most lenders ask for a deposit of at least 25%, and some want 30% or more. A bigger deposit usually brings more choice and lower rates.

For a second home you'll use yourself, it varies more between lenders and depends on how comfortably you can afford two mortgages. Lenders will also check where the deposit comes from (see our guide to gifted deposits). Budget separately for stamp duty, legal fees and furnishing.

Holiday home mortgage rates

Holiday let mortgage rates are usually higher than residential rates, because fewer lenders offer them and income is seasonal. Second-home rates tend to sit closer to mainstream deals. For context, Moneyfacts put the average two-year fix at 5.73% and five-year fix at 5.78% on 15 September, and the Bank of England held Bank Rate at 3.75% on 17 September. See our latest rates update.

How lenders work out holiday let income: an example

Lenders usually take projected weekly rents for the low, mid and high seasons, then check the rent covers the mortgage interest by a margin, often 125% to 145%, at a test rate.

These figures are assumptions, not a quote, and lenders calculate income differently. The point: passing a lender's test doesn't mean a property will make money.

Can you get a mortgage on a holiday lodge or static caravan?

Usually not. Most lodges and static caravans on holiday parks are moveable structures, not land. You own the unit and have a licence to keep it on a pitch, so there's nothing a mortgage lender can secure against. Site licences also usually allow holiday use only, often with a closed period each year, so you can't live there full time.

Buyers tend to use savings, specialist leisure finance or a personal loan, or money raised against their main home. These can carry higher rates and shorter terms, and borrowing against your home puts it at risk. Before you commit, check:

• how long the licence or pitch agreement lasts, and what happens when it ends
• the annual site fees and how much they can rise
• the rules on selling, including any commission the park takes
• if you're allowed to sublet, and on what terms

Lodges and caravans often fall in value over time. A few sit on land with planning permission that allows them to be bought like a house, so ask an adviser before ruling a mortgage out.

Tax changes for holiday home owners

Three taxes matter most. This is a general summary, not tax advice, so speak to an accountant before you buy.

Furnished holiday lettings tax rules have ended

The special furnished holiday lettings (FHL) tax regime was abolished from 6 April 2025 (1 April 2025 for companies). Holiday lets are now taxed like other residential lets: individual owners get only a basic-rate tax credit for mortgage interest, and some capital gains tax reliefs no longer apply. That can make a mortgaged holiday let less profitable.

Stamp duty on an additional property

Council tax premiums on second homes

Since 1 April 2025, councils in England can charge up to double council tax on second homes, and most do. In Wales the premium can be up to 300%, and in Scotland there has been no upper limit since 1 April 2026. A holiday let may pay business rates instead if it's available for 140 nights and let for 70 a year in England (252 and 182 in Wales). Read more in our article on second homes and council tax.

We are not tax advisers. The tax and stamp duty information above is a general summary based on the rates published at the time of writing, not a guarantee of the tax you will pay. Your solicitor or conveyancer will confirm the amount due, and you should take advice from a qualified tax adviser on your own circumstances.

Local rules, registration and insurance

Check planning too. Some holiday properties are limited to holiday use, and some areas, such as St Ives in Cornwall, restrict new-build homes to people who live there as their main home.

For insurance, a standard home policy usually won't cover a property that's often empty or let to guests, so you'll need second-home or holiday let cover.

How to buy a holiday home with a mortgage

1. Decide how you'll use itPersonal use, letting or both. This sets the mortgage type, tax and insurance.
2. Check affordabilityGet an agreement in principle and, for a let, a letting agent's seasonal rent projection.
3. Check the propertyPlanning conditions, local premiums, licensing or registration, and lender rules on location and property type.
4. Apply and completeYour broker submits the application, the lender values the property and your solicitor completes the purchase.

Getting the right holiday home mortgage

The right lender depends on how you'll use the property, where it is and your income. Criteria vary a lot, and many holiday let products are only available through brokers.

At Quick Mortgages we search the whole of the market, including specialist lenders, and there are no broker fees for our advice. We're based in Birmingham and help buyers across the UK. See our purchase, buy-to-let and specialist lending pages, or try our mortgage search tool.

Speak to an adviser

Holiday home mortgage FAQs

Can I have a normal mortgage on a holiday home?

If it's a second home for your own use, yes: many mainstream lenders offer residential second-home mortgages. If you plan to let it to guests, you'll usually need a holiday let mortgage instead. Letting a property on a residential mortgage without the lender's permission can breach your terms.

Can I get a mortgage on a holiday lodge?

Usually not, because most lodges on holiday parks are moveable structures on a pitch licence rather than land you own. Buyers tend to use savings, specialist finance or money raised against their main home.

How do I get my first mortgage for a holiday home?

It's harder if you don't already own a home. Many holiday let lenders require you to be a homeowner, and a second-home mortgage assumes you have a main residence. A larger deposit and a strong income help, and a broker can find lenders that consider your situation.

Can I stay in my holiday let?

Usually, yes, but most holiday let lenders limit the number of days you can use it yourself each year. Heavy personal use may also change how the loan is regulated and taxed.

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Disclaimer:

This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.

While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.