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Holiday let mortgages from TBS

Holiday let mortgages

A home from home - we can help you buy the holiday home you have always dreamed of. 

  • Newly reduced 2.99% variable rate. This mortgage product offers a variable interest rate that is discounted below our Standard Variable Rate for the first 2 years. At the end of the discounted rate period, the interest rate will revert to our Standard Variable Rate currently 5.99% No application fee
  • New 5 year fixed rate mortgage product at 3.89%. At the end of the fixed rate period, the interest rate will revert to our Standard Variable Rate currently 5.99%. £199 application fee.
  • No arrangement fees on all holiday let mortgages (including free valuation up to 800k)
  • Your property can be marketed for rent through AirBnB type platforms. 
  • Please see below for full Holiday Let Mortgage product details.

Look no further to find out if you are eligible for a Holiday Let mortgage. Complete the following form or give us a call directly - we'd love to be part of your holiday home journey. Good to know: our Holiday Let mortgages are for everyone, not just teachers.

Now Could Be The Ideal Time for a Holiday Let Mortgage

Staycations & the rise of Holiday Let mortgages

The increasing number of Britons holidaying in the UK is creating the perfect environment for a thriving holiday rental market – and real demand for Holiday Let mortgages.

Teachers Building Society provides specially designed mortgages for properties to be used as a Holiday Let – and can lend up to 75% loan to value, meaning you would need to put down a 25% deposit on your purchase.  Our Holiday Let mortgages are available to applicants with any occupation - not just for teachers and education professionals. 

Holiday Home Financial Considerations

Think about why you are buying the property, as this will affect which type of mortgage will suit you best. Are you looking for capital gain or a regular seasonal rental income? Make sure you consider your rental tariff to be attractive all year round to avoid off-season income dips which could impact your ability to cover repayments.

Holiday lets need careful financial management in order to optimise your return on investment, which is where we come in.

Give us a call

0800 378 669
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More about our Holiday Let mortgage products

Teachers Building Society specialises in Holiday Let mortgages – specialist in-house underwriters mean we’re not reliant on a computer generated response, allowing us to consider more unusual mortgage applications. You can take advantage of:
 

  • Lending up to £1 million at 75% LTV.
  • Variable and fixed rate product options
  • Minimum income of £25,000 or for joint applications a combined income of £40k.
  • Maximum age at end of term 83.
  • Use of your property for up to 2 months per 12 month period.
  • Lending is calculated on projected average rental income. For remortgages, we use 100% of rental received.
  • Free valuation up to £800k.
  • Arrangement fee: £0.
  • No application fee on our variable rate product
  • Property can be marketed for rent through AirBnB type platforms.
  • See further lending criteria below.
  • Available for purchase and remortgage

Representative Examples

 2 Year Discounted Variable Rate

A mortgage of £204,590.00 over 30 years initially on a discounted variable rate of 2.99% (equal to a 3.00% discount off our SVR) for 2 years and then our Standard Variable Rate of 5.99% for the remaining term, would require 24 monthly payments of £509.77 and 336 monthly payments of £1018.76.

The total amount payable would be £559,254.64 made up of the loan amount plus interest (£354,554.64) with a Funds Transfer Fee of £25.00 and a Mortgage Exit Fee of £85.00. 

The overall cost for comparison is 5.7% APRC representative.

5 Year Fixed Rate

A mortgage of £204,590.00 over 30 years initially on a fixed rate of 3.89% (Ending on 14 March 2027) and then our Standard Variable Rate of 5.99% for the remaining term, would require 61 monthly payments of £663.21 and 299 monthly payments of £1017.30.

The total amount payable would be £549,549.38 made up of the loan amount plus interest (£344,650.38) with an Application Fee of £199.00, Funds Transfer Fee of £25.00 and a Mortgage Exit Fee of £85.00. 

The overall cost for comparison is 5.5% APRC representative.


Call us on 0800 378 669 for more information or arrange a mortgage appointment below.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Holiday Let 2 Year Variable Rate Mortgage 25% Deposit 2.99% Variable
2.99% 5.99% 5.7% APRC 75% N/A N/A

Key Features

Variable rate

A variable rate, currently 2.99%, which is discounted by 3.00% from our Standard Variable Rate for the first 2 years. It then changes to our Standard Variable Rate, which is currently 5.99%, and remains on our variable rate terms for the rest of the mortgage.

The overall cost for comparison is 5.7% APRC representative.

What you Pay

  • Daily interest.
  • A valuation fee is payable for all properties worth £800,000 or more.

Early repayment charge

An Early Repayment Charge of 3% on the amount repaid will be applied for the duration of the product term. You can overpay by up to 10% of the loan outstanding per calendar year without charge.

What we Pay

  • The first valuation fee for properties worth less than £800,000

Who can apply and more information

  • Minimum income of main applicant is £25,000 (£40,000 if joint application).
  • Minimum property value of £75,000.
  • Minimum loan amount £50,000
  • Not available for first-time buyers or professional landlords.
  • Available for home purchase and remortgage applications.
  • This mortgage is not portable.

Your home may be repossessed if you do not keep up repayments on your mortgage

Representative Example

A mortgage of £204,590.00 over 30 years initially on a discounted variable rate of 2.99% (equal to a 3.00% discount off our SVR) for 2 years and then our Standard Variable Rate of 5.99% for the remaining term, would require 24 monthly payments of £509.77 and 336 monthly payments of £1018.76.

The total amount payable would be £559,254.64 made up of the loan amount plus interest (£354,554.64) with a Funds Transfer Fee of £25.00 and a Mortgage Exit Fee of £85.00. 

The overall cost for comparison is 5.7% APRC representative.

Call us today on 0800 378 669

This product may be withdrawn or amended at any time, without prior notice

Holiday Let 2 Year Variable Rate Remortgage 25% Deposit 2.99% Variable
2.99% 5.99% 5.8% APRC 75% N/A N/A

Key Features

Variable rate

A variable rate, currently 2.99%, which is discounted by 3.00% from our Standard Variable Rate for the first 2 years. It then changes to our Standard Variable Rate, which is currently 5.99%, and remains on our variable rate terms for the rest of the mortgage.

The overall cost for comparison is 5.7% APRC representative.

What you Pay

  • Daily interest.
  • A valuation fee is payable for all properties worth £800,000 or more.

Early repayment charge

An Early Repayment Charge of 3% on the amount repaid will be applied for the duration of the product term. You can overpay by up to 10% of the loan outstanding per calendar year without charge.

What we Pay

  • The first valuation fee for properties worth less than £800,000
  • For remortgage applications, legal fees will be paid when using our appointed solicitor. For non-standard remortgages (i.e. shared ownership, transfer of equity, unencumbered property), we will pay £250 towards the legal costs and this will be sent directly to your solicitor on completion of the mortgage.

Who can apply and more information

  • Minimum income of main applicant is £25,000 (£40,000 if joint application).
  • Minimum property value of £75,000.
  • Minimum loan amount £50,000
  • Not available for first-time buyers or professional landlords.
  • Available for home purchase and remortgage applications.
  • This mortgage is not portable.

Your home may be repossessed if you do not keep up repayments on your mortgage

Representative Example

A mortgage of £204,590.00 over 30 years initially on a discounted variable rate of 2.99% (equal to a 3.00% discount off our SVR) for 2 years and then our Standard Variable Rate of 5.99% for the remaining term, would require 24 monthly payments of £509.77 and 336 monthly payments of £1018.76.

The total amount payable would be £559,254.64 made up of the loan amount plus interest (£354,554.64) with a Funds Transfer Fee of £25.00 and a Mortgage Exit Fee of £85.00. 

The overall cost for comparison is 5.7% APRC representative.

Call us today on 0800 378 669

This product may be withdrawn or amended at any time, without prior notice


Holiday Let Lending Criteria

Lending Criteria Description
Location Areas associated with a demand for Holiday Let properties
Rental
Assessment
 Purchase

  • Average of low, medium & high season weekly rates x 30 - Evidenced by Letting Agent Confirmation
Remortgage

  • Based on 100% of actual rental receipts over the last 12 months, evidenced by Letting Agent confirmation and/or bank statements
  • Where less than 12 months rental history based on purchase assessment
 Restrictions Not available for properties on holiday parks or which have restrictive usage covenants such as a holiday let covenant. 
 Marketing Property can be marketed for rent through AirBnB type platforms.
The criteria shown is a summary, for details of the full criteria, please contact us. All mortgage applications are subject to underwriting.
Holiday Let mortgages are non-regulated products and therefore are not regulated by the Financial Conduct Authority.