Demand for UK holiday lets creates strong business for brokers

According to research from Trivago, the travel website, holiday bookings made by Brits in 2024 are led by domestic destinations, with Blackpool being a more popular choice than Benidorm! So how does this trend affect mortgage brokers?

The large numbers holidaying in the UK, rather than overseas is creating a high demand for holiday let accommodation. With such popularity, many mortgage brokers are working flat out to accommodate requests from investors wanting to finance a holiday let purchase. We’re happy to help!

Cause and effect

Soaring airfares are a major factor in people opting for staycations. Airline tickets have become significantly more expensive resulting in many travelling shorter distances.

According to Trivago’s data, a surprisingly high proportion of top destinations for Christmas 2023 and going into 2024 are located domestically, with London, Llandudno, and Edinburgh being the most popular choices rather than overseas destinations. Liverpool and Manchester also make the top 10.

The trend of spending leisure time in the UK is driving growth in the holiday let market leading to increased financing opportunities for brokers. Harpenden has experienced a substantial rise in the number of mortgage applications for holiday lets providing brokers with an additional opportunity to expand their businesses.

Sourcing the right holiday let mortgage

With many years of experience, Harpenden Building Society is a specialist lender in the UK holiday let space. Our mortgage rates are competitive, and we offer additional attractive features to our customers.

Owners can use the property for their own purposes for up to 90 days a year which is a popular added feature. We are not as strict about location either when compared to many other lenders. We are open to financing properties in non-traditional holiday areas like city centres and historical destinations.

We also understand that people looking to invest in a UK holiday let may have a complex financial profile with multiple income streams. Our expertise in the field allows us to manage complex cases and provide specialist solutions that other lenders may not be able to service.

Our policies are underwritten manually by experts, which allows us to take a flexible approach. We consider a wide range of complex income sources, including trust income, pensions, maintenance, investment, as well as standard employed and self-employed income.

Harpenden Building Society Holiday Let mortgages – key features at a glance: 

  • 90 days personal usage allowance per annum
  • Airbnb considered
  • We lend in town and city centres as well as coastal areas
  • We lend on properties above commercial units
  • Minimum income of £30.000 required
  • Top slicing
  • Up to 3 properties on one title considered
  • 75% LTV available on IO and 80% available on repayment

Holiday Home / Second Home

  • We consider a range of incomes, including pension, trust, investment and maintenance as well as 100% of bonuses, overtime and commission (2 years proof required)
  • We consider latest years income for self-employed applicants
  • No maximum age
  • 75% LTV available on IO and 80% available on repayment

Whether it’s lending for a holiday let or in another area of specialist lending, the Harpenden team is always pleased to speak with mortgage brokers about their current lending requirements.

Details can be found at Harpenden’s website

or you can contact the team at [email protected]

Jean Errington is business development manager at Harpenden Building Society