Holiday Let Mortgage Calculator
Holiday Let Analysis
Mortgage Amount-
Monthly Mortgage (interest only)-
Gross Annual Income-
Net Annual Income (after costs)-
Gross Yield-
Annual Cash Flow-
Holiday Let Mortgage Key Criteria
| Criteria | Typical Requirement |
|---|---|
| Maximum LTV | 70-75% |
| Interest Rate Premium | +0.5-1.5% vs standard BTL |
| Minimum Income Requirement | £25,000-£30,000 pa |
| Letting Weeks Required | Typically 20-30 weeks projected |
| FHL Status (from April 2025) | Abolished — treated as BTL |
FHL Tax Changes April 2025
FHL Status
Abolished
Capital Allowances
Removed
Interest Relief
20% credit only
CGT Rate
18%/24%
Pension Relief
No longer
Loss Relief
Property only
How to Use This Calculator
1
Enter property details
Input property values and financial information for your scenario.
2
Add cost estimates
Include all relevant costs such as fees, rates and deposits.
3
Select options
Choose the relevant settings for your specific situation.
4
Review the results
The calculator shows a full breakdown of all costs involved.
5
Compare alternatives
Use the results to compare different options and make an informed decision.
Frequently Asked Questions
What changed for holiday lets in April 2025?
The Furnished Holiday Lettings (FHL) tax regime was abolished from 6 April 2025. Holiday lets are now treated the same as standard residential lettings. This means loss of capital allowances on furnishings, mortgage interest restricted to 20% tax credit (Section 24), higher CGT rates (18/24% instead of 10/20%), and loss of pension contribution relief from rental income.
Is a holiday let still worth it?
Holiday lets can still be profitable due to higher weekly rates than standard BTL. A property letting at 800/week for 30 weeks generates 24,000 gross, compared to perhaps 12,000-15,000 for a standard BTL. However, running costs are higher (cleaning, utilities, maintenance, marketing) and void periods are seasonal. The tax changes from April 2025 reduce the net advantage.
What mortgage rate do holiday lets get?
Holiday let mortgage rates are typically 0.5-1.5% higher than standard BTL rates. In 2025/26, expect rates of 5.5-7.0% for a 75% LTV holiday let mortgage. Some lenders require minimum personal income of 25,000-30,000 and evidence of letting potential from a local agent.
How many weeks must I let for?
Under the old FHL rules, you needed 105+ available days and 70+ let days. Since FHL is abolished, there are no minimum letting requirements for tax purposes. However, mortgage lenders typically want to see 20-30+ weeks of projected bookings to support affordability. Council tax vs business rates classification may require 140+ available days.
What running costs should I budget for?
Budget for: management/booking fees (15-25% of rent), cleaning between guests (50-150 per changeover), utilities (2,000-4,000/year), insurance (500-1,000/year), maintenance (2,000-5,000/year), furnishing replacement, WiFi/TV licences, and marketing costs. Total running costs typically amount to 30-40% of gross rent.
Official Sources & References
Data verified against official UK government sources. Last checked April 2026.