Background image: Holiday Let Mortgage

Holiday Let Mortgage

Designed for residential holiday lets, whether you’ve got your eye on a Highland hideaway or a coastal cottage.

Available for new residential holiday lets and remortgaging existing holiday accommodation.

Sma22 Gold Winner Building Society Of The Year
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Excellent and Seamless Service
The entire process was handled extremely efficiently from beginning to end and I would not hesitate to recommend.
Fast and Efficient Customer Experience
Extremely positive customer experience. All aspects of applying for and obtaining my mortgage were dealt with very efficiently and courteously by SBS.
Great Customer Service
Always excellent service from knowledgeable pleasant staff.
Efficient friendly staff
Efficient friendly staff good at explaining options available in no nonsense fashion
Opened 2 new accounts
Very pleased with first visit yesterday and opened 2 new accounts
The personal touch
The personal touch and being able to speak to an advisor is great. Staff always respectful and helpful.
Key Information
  • Our flexible underwriting means we’ll consider your individual circumstances
  • Loans from £50,000 up to £350,000
  • Minimum mortgage term is 5 years and maximum term is 40 years
  • To apply, you need to be at least 18 years old and normally not more than 85 at end of mortgage term.
Mortgage Interest Rates

Key Mortgage Information


All mortgages are subject to a suitable property valuation.

For property purchases in Scotland, we can normally use the property valuation contained in the sellers' Home Report provided that it’s no more than 3 months old (please speak with our Mortgage Advisers for further details).

Maximum Loan and Loan to Value

For loans up to £350,000 you can borrow up to 80% of the property valuation or purchase price (whichever is lower).

Maximum loan size is £350,000.


Applicants must be at least 18 years old on application and normally not more than 85 at end of mortgage term.

Minimum mortgage term is 5 years and maximum term is 40 years.

How much can I borrow?

All mortgage applications are based on affordability.

Single applicants must have annual earned income of £40,000.

For Joint applications, at least one applicant must have earned income of £40,000, alternatively the overall joint earned income must be £60,000.

  • For loans less than 80% of the property valuation or purchase price (whichever is lower) we’ll lend up to:

    Single applicant: 4.5 x income

    Joint applicants: Main income x 4.5 plus second income x 1 OR Joint income x 4

  • For loans over 80% of the property valuation or purchase price (whichever is lower) we’ll lend up to:

    Single applicant: 4 x income

    Joint applicants: Main income x 4 plus second income x 1 OR Joint income x 3.75

Our flexible underwriting means we assess all applications on an individual basis. The amount we’ll lend will depend on your circumstances. Any existing financial commitments will be taken into consideration when calculating affordability.


Interest Rates

Check our current interest rates

Are there restrictions on the length of stay in the property?

When you’re letting the property out, the maximum length of one stay is 30 days.

As owner of the property you can use it for your personal use as many times as you want and for as long as you want.

Repayment Options

  • Capital and Interest
  • Interest only - available up to 75% of the property value or purchase price (whichever is lower) with a maximum loan size of £350,000. When you apply, we’ll need confirmation that you have plans in place to pay off your mortgage at the end of the term and we’ll ask you about your plans occasionally while you have a mortgage with us. Examples of these plans are normally endowment policies; stocks and shares ISAs; pension lump sums; and second/investment properties

A Standard Security (Scotland) / First Legal Charge (England) will be taken over the property being purchased as security for the mortgage borrowing.

Early Repayment Charges

If you make overpayments of 10% or more of the loan amount in any 12 month rolling period during the initial period, and depending on which mortgage you have, the charges apply as follows:

  • For our 2 year mortgage, you will need to pay a charge equivalent to 3% of the outstanding balance amount in year 1 and 2% in year 2.
  • For our 5-year mortgage, the early repayment charge will be:

o          5% of the outstanding balance in the 1st year

o          4% of the outstanding balance in the 2nd year

o          3% of the outstanding balance in years 3 & 4

o          2% of the outstanding balance in year 5

After the initial period, the Society will not make an early repayment charge if you move to Standard Variable Rate and choose to repay the mortgage. However, there will be certain redemption fees that will need to be paid (see our Details of Charges leaflet for more information).



You’ll need to provide evidence that buildings insurance for the property is in place before we can release funds. 


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What you’ll need for your application


We’ll allocate a qualified Mortgage Adviser to take you through the whole process. They’ll be able to advise which product best suits your requirements by the information you give them.

You can call us on 0333 207 4007 to make an appointment. Our lines are open 9-5 Mon to Fri (10-5 Wed). Calls may be recorded and/or monitored. 

We’ll need proof of ID - this can include a passport or a driving licence.

We’ll ask you for 3 months recent payslips and bank statements to confirm your income as your income and outgoings will help us determine how much you can borrow. You’ll need to think about the impact any future rise in interest rates would have on your finances.

We’ll also need information about the property you want to buy, including valuation details or Home Report, and how much your deposit will be.

We’ll need your consent to check your personal financial data to help us assess your mortgage application so we can complete it as efficiently as possible.


What happens after I’ve applied for a mortgage?


The next step is for us to make you a mortgage offer. Before we can do this, we’ll need a valuation of the property you want to buy. Most homes for sale need the seller to produce a Home Report, which is given to prospective buyers. This contains a survey report featuring information on the condition and valuation of the property. If there’s no Home Report, we’ll instruct an approved valuer to carry out a Lender’s Valuation. We’ll need to charge for this.

Conclusion of Missives and settlement is the final stage. This means that the buyer and seller are both committed to the sale. Your solicitor will keep in touch with you throughout the whole process.
Your solicitor will request the mortgage funds from us before transferring to the seller’s solicitor.