The UK holiday let mortgage market hasn’t disappeared. It’s grown up.
Demand is still strong, fuelled by resilient domestic tourism and a shift towards high‑quality, experience‑led accommodation in the right locations. Well‑run holiday lets continue to outperform traditional buy‑to‑let on gross income — and that ongoing demand gives lenders confidence in the sector’s long‑term fundamentals.
But the market has changed. And lending has had to change with it.
A new reality after the 2025 tax changes
The removal of Furnished Holiday Let tax advantages in April 2025 marked a clear turning point. With mortgage interest relief withdrawn and capital allowances eliminated, success can no longer depend on tax efficiency alone.
Today, cash flow, sustainability and borrower resilience matter more than ever. For lenders, this means sharper underwriting and clearer decision‑making. Not every proposal stacks up — but the right ones absolutely do.
Confidence through clarity
At Newbury Building Society, we’ve leaned into this maturity. We continue to support holiday let borrowing — but with a focus on flexibility, realism and how these properties actually operate in the real world.
Our lending reflects the needs of serious holiday let owners who are building something sustainable, not speculative.
Flexibility that works for your clients.
Personal occupancy allowed
We don’t restrict owner use. We recognise that personal involvement often protects quality, reduces risk, and underpins long‑term commitment. In an increasingly rigid market, this flexibility truly matters.
Limited company holiday lets supported
Clients operating through a company structure? We can help. Our approach gives professional landlords greater choice in how they finance and manage portfolios in the post‑FHL landscape.
A pragmatic underwriting approach
Location, seasonality, realistic income evidence and regulatory exposure are all carefully considered. Borrowing levels are aligned with today’s tax reality.
See our holiday let mortgage product.
Specialist lending for a more sophisticated market
The holiday let sector hasn’t become harder — it’s become more selective.
For borrowers with a clear strategy, strong locations and a sustainable business model, specialist lenders still have an important role to play. At Newbury, we work alongside experienced brokers and committed borrowers to support high‑quality holiday let businesses that are built to last.
Because when lending evolves with the market, good businesses don’t just survive — they thrive.
Speak to our sales team today and find out if your client's holiday-let case qualifies.
Call us on 01635 918000, email us, or use our live chat.