A holiday let mortgage is a form of investment mortgage that allows you to purchase a property to let out to tourists and holiday makers on a short-term basis. You cannot take out a buy to let mortgage and then let the property out as a short-term holiday let. Also, if you don’t wish to let out your holiday home and want to stay there yourself then you will need a mortgage for a second home and not a holiday let mortgage.
For a property to qualify as a holiday let for tax purposes, it must be furnished and be available for let for at least 210 days a year. That means that you could potentially use it yourself for up to 22 weeks every year. The main tax advantages of holiday lets, compared to buy to let properties is that you can still deduct mortgage interest payments from rental income to reduce your profits and therefore your tax liability.
