Holiday let mortgage calculator
Estimate the loan, monthly payments and income cover on a holiday let using your own figures. The interactive calculator is coming soon.
Reviewed by David Sampson, Founder & Director · Created 20 October 2026 · Last reviewed 20 October 2026
How a holiday let mortgage calculator works
A holiday let mortgage calculator estimates the loan, the monthly payment and how far projected holiday income covers the mortgage interest. It uses the property price, deposit, interest rate, term and whether the loan is interest-only or repayment, together with seasonal weekly rates and the number of weeks the property is expected to be let.
The figures it produces are estimates based on the inputs entered. Lenders use their own stressed rates and income tests, so a calculator result is a starting point rather than an offer, and it should be read alongside each lender's current criteria.
Working out projected income
Projected income is usually built from low, mid and high season weekly rates multiplied by the weeks let in each season. Lenders often use figures from a letting agent or valuer, and they allow for empty weeks and the owner's own use. Using realistic occupancy rather than peak weeks alone gives a fairer estimate of annual income.
Running costs then reduce what is left. Cleaning, linen, booking platform fees, utilities, insurance, council tax or business rates, repairs and furnishing replacement are all higher on a holiday let than on a long-term tenancy, and setting them against the income shows what is left to cover the mortgage.
Interest cover and loan size
Lenders test that projected holiday income covers the mortgage interest by a margin, calculated at a stressed rate that is often higher than the rate actually paid. The margin and stress rate differ by lender and by the borrower's tax position, so the same property can support a different loan with each lender.
Some lenders also use the borrower's personal income to support a loan where holiday income alone falls short. How lenders assess income and criteria is covered on the holiday let mortgage lenders page, which explains how lenders differ.
Holiday lets in Scotland and Wales
Holiday let mortgages work in a similar way across the UK, but Scotland and Wales have their own taxes and rules. Scotland charges Land and Buildings Transaction Tax with an Additional Dwelling Supplement, and requires a short-term let licence. Wales charges Land Transaction Tax at higher rates on additional homes and lets councils set council tax premiums.
These costs change the money needed at purchase and the running costs each year, so they belong in any estimate for a holiday let outside England.
Frequently asked questions
How much can I borrow for a holiday let?
It depends on the projected holiday income, the lender's interest cover test and stress rate, the deposit and sometimes personal income.
How do lenders calculate holiday let income?
Usually from projected seasonal weekly rates, averaged across the year and tested against the mortgage interest at a stressed rate.
Is the calculator result a mortgage offer?
No. It is an estimate based on the figures entered. Lenders apply their own criteria and rates.
Can I use the calculator for a holiday home in Scotland?
Yes, for the loan and income estimates. Scottish taxes and licensing costs need adding separately.
Does the calculator include running costs?
The finished calculator will let users enter annual running costs and set them against projected income.
Are holiday let mortgages interest-only?
Many are available on an interest-only basis, and repayment options are also common.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. Information on this page is for general guidance only and does not constitute financial advice.Always verify details directly and seek independent advice before making financial decisions.