Mortgage Services
Your residential mortgage probably doesn't allow short-term letting
Most residential lenders restrict or prohibit STL use. Operating without the right mortgage can breach your loan terms. We connect you with specialist lenders who offer products designed for holiday lets and STL properties.
Mortgage risk
Letting your property short-term without lender consent can constitute a breach of your mortgage conditions. This can trigger immediate repayment demands, affect your credit rating, and invalidate your insurance.
Holiday Let Mortgage Products
Dedicated Holiday Let Mortgages
Purpose-built products for properties used exclusively as short-term lets. Assessed on projected rental income rather than personal income.
Let-to-Buy / Consent to Let
Converting your existing home to an STL? Some lenders offer consent to let on existing residential mortgages, or let-to-buy products.
Portfolio Mortgages
For operators with multiple STL properties. Specialist lenders offer portfolio deals with better rates and simpler management.
Remortgage & Refinance
Already have an STL but on the wrong product? Remortgaging to a specialist product can reduce costs and remove compliance risk.
Capital Allowances & Mortgage Interest
The abolition of the FHL tax regime in April 2025 has significantly changed the financial picture for STL mortgages:
- Mortgage interest relief restricted: Previously, FHL operators could deduct mortgage interest as a trading expense. Now it's limited to a 20% basic rate tax credit - the same as buy-to-let
- Capital allowances lost: No more capital allowances on furniture, fixtures, and fittings. Only Replacement of Domestic Items Relief available (like-for-like only)
- Business Asset Disposal Relief gone: Sale of an STL property no longer qualifies for the reduced 10% CGT rate
- Carried-forward allowances: If you claimed capital allowances under the FHL regime, you may still have unclaimed allowances to carry forward - review with your accountant
These changes make choosing the right mortgage product more important than ever. The interest rate difference between a residential and specialist holiday let mortgage can significantly impact your net returns.
Typical Lending Criteria
| Criteria | Typical Range |
|---|---|
| LTV (Loan to Value) | Up to 75% |
| Minimum deposit | 25%+ |
| Income assessment | Projected rental income (125-145% coverage) |
| Minimum property value | £100,000+ |
| Term | Up to 25 years |
How We Help
STL Solutions works with specialist mortgage brokers and lenders who understand the STL sector. We connect you with the right provider for your situation - whether you're buying your first holiday let or refinancing a portfolio.
Need an STL mortgage?
Tell us about your property and we'll connect you with a specialist broker.
Speak to a Specialist