Building a holiday home business: The financial solutions you need

Finance to buy, convert, refurbish and operate holiday homes - from the widest range of lenders

Speak to one of our experts020 4525 5312

Funding options



  • Up to 80% Loan to Value available
  • £50,000 – No Maximum
  • Rates from 2% over base rate
  • Market value or business value


  • Repayment and interest only available
  • Adverse Credit – no problem
  • Income to be 125% of the mortgage interest,
  • Straightforward


  • Finance for refurbishment
  • Refinance existing property assets
  • Land purchase
  • Oveseas solutions

Talk to Rangewell – the business finance experts

Holiday homes can provide a rewarding business, but most lenders cannot provide the funding you need. We know those that can, and we will work with you to find the most competitive deal on the funding that's right for you

At Rangewell we recognise your professional status, and we work harder to find you better solutions - which can include 100% finance for many of your needs.

Running holiday homes can be far more lucrative than a conventional property business

But it's essential to understand your finance options when taking on this type of property.

Holiday homes, whether in the UK or abroad, can be a lucrative business - and a good-quality property in a sought-after holiday location could bring you in three times the annual income of a standard buy to let property.

A 4/5-bedroom holiday cottage in a popular area, with a good level of equipment and its own pool, could generate upwards of £3000 a week in high season. A standard property with a similar number of bedrooms for the year-round rental market in the same areas could bring in £800 a week according to listings on Rightmove.

You may be ready to buy your first holiday home, or you may already be operating the first of what you intend to be a series of properties.  You may want to turn a holiday home into the basis of a holiday homes business. You may simply want to invest in improving the facilities of a property to increase the yield. But like any business, you need finance to take things further.

We have a range of funding solutions to help you make the most of your holiday home business plans.

Finance for buying in the UK

The high cost of property in the UK makes leverage essential for most businesses.

However, holiday lets present some special challenges if you need a mortgage. Most importantly, it is against the terms of your mortgage agreement to rent out a property with a residential or even a buy to let mortgage to holidaymakers. This counts as mortgage fraud and lenders could call in the loan if they find out.

If you need a mortgage to fund your holiday home investment you’ll need a commercial or specific ‘holiday let’ mortgage rather than a standard buy to let loan. Lenders will want the projected letting income to be well above the annual mortgage interest. Like BTL mortgages, this generally requires a rental income, after the agent’s commission, to be at least 125% of the mortgage interest, calculated at an interest rate of 6%.

Some lenders will look at the property’s market value when making a lending decision. Others will take income into consideration. If a property has an established history of holiday rentals, they may base the size of the mortgage on the expected rental yield.

Lenders will expect holiday let landlords to own another property and have a personal income above a certain minimum level. Getting a mortgage to buy a holiday home property may be easier if you already own and operate a holiday home, and can show evidence of running a successful business.

It may also be possible to secure lending to buy a holiday home with a commercial mortgage. If you need to fund a holiday home purchase at short notice, perhaps in an auction, a Bridging Loan might be suitable to provide large-scale funding at short notice, until you can arrange longer-term finance.

Contact us to discuss Commercial Mortgages, Bridging Loans or even Property Development Finance.

Finance for buying abroad

Buying a holiday home overseas can be more of a challenge. Traditional mortgages, including BTL and even holiday-let mortgages, are not suitable for property outside the UK. However, there are solutions that can provide the funds you need to buy a property abroad.

These can include loans and commercial mortgages secured on property that you own within the UK. So if you own property, including holiday homes in Britain, you may be able to raise funds on them which you then use to buy your property abroad.

Finance for refurbishment

To realise the top rates for your holiday home, you will need to provide top-class facilities. Holiday homes need to be furnished to a high standard with all mod-cons. Wi-Fi has become a must, as is a state of the art television, and many guests will expect to find a kitchen at least as well equipped as the one they have at home.

Many owners report that installing a pool is also necessary. In the UK, a heated pool that can be used all year round is seen by many guests as essential, and having an enclosed pool can make the difference between long voids and a holiday home that is booked all year round.

Providing finance for refurbishing and equipping holiday homes can be achieved with a number of lending products. Smaller needs, such as an end of season refreshment of decoration, and replacement of furniture that has seen hard use, may be provided with an unsecured loan. The funds for more extensive work, such as installing a pool and associated equipment, and completing it with a weatherproof enclosure might need a business loan secured on your property itself.

Contact us to discuss the most appropriate type of finance for your refurbishment needs.

Finance for operating your holiday home business

A holiday home may well offer substantial returns but, as with any business, there will be some significant costs to consider. The property must be thoroughly cleaned and the linen changed between guests.

You may be able to do this yourself but, if you don’t live near the property, you might need to hire a local cleaner to do it for you. The same goes for checking guests in and out, handing over and retrieving keys and dealing with breakages. Hiring a local agent to do this for you will eat into your profits.

Paying for local people to be on hand to deal with turnarounds and problems that inevitably arise will be essential if your holiday home is located abroad.

You will also need public liability insurance to cover any injuries to guests or your staff, and the usual buildings and contents cover essential with any property.

Another inevitable cost of running your holiday home business will be the cost of marketing. While there are many services that can take care of publicising and booking your properties, they may cost a substantial percentage of rental income or an upfront charge. It’s not uncommon for a letting agent to charge 20 to 30% (plus VAT) of each holiday rental if they offer a full management service.

You may need to arrange finance for many of these expenses at the beginning of the season before the full income from your business starts rolling in.

As a business, you may be able to arrange working capital loans at the beginning of a season. These are designed to provide the funds you need for the short expenses of operating a business and are designed to be paid back once funds start coming in.

Contact us about Working Capital Finance.

Dealing with emergencies

Any emergency in a holiday home can be costly to your business. A problem with facilities such as heating or plumbing, which might be relatively minor in a conventional property, could cost you one week of rental income, potentially running into thousands in a holiday home in peak season. It is possible to arrange an unsecured loan at short notice to deal with the costs of calling in expert trades and replacing key items at short notice.

Contact us about fast access to funds with a Short-term Loan.

Tax Loans - the answer to seasonal cashflow problems

Tax is an issue for every business. A large quarterly VAT or annual tax demand can cause problems with your cashflow, particularly if it falls at the same time as other costs, or in the middle of a slow season.

Tax Loans help you to spread the cost of your tax demands into affordable monthly payments, helping ensure that your business does not have to go through a cash-flow drought.

Benefits of a Tax Loan:-

  • Better control of cash flow
  • Fixed monthly payments
  • Quick and simple to arrange
  • Avoids issues with HMRC and potential penalties

Goodwill Loans – funding property overseas

Goodwill Loans, also known as Capital Withdrawal Loans or Cash Outs, lets you access the value of a UK business or healthcare practice, without causing potential cashflow difficulties. They allow you to use the goodwill built up in the practice as the security for a loan. It can bring you a sum typically between £50,000 and £500,000, with repayments over terms up to 15years. Interest rates are agreed when the loan is taken out, and are variable - but will be significantly more favourable than those provided by other lending methods.

The Goodwill Loan can be used in any way that you wish. Many people use a Goodwill Loan to buy an investment property, including property overseas. It could provide a cost-effective way to fund a Holiday home as the basis for a new business.

Get our help finding the most competitive Goodwill Lending for your needs.

Working Capital Finance

Working Capital Finance is designed to boost the working capital available to a business. It's often used to provide cash to pay staff and suppliers while business is slow during periods of slower business, such as off-peak seasons or perhaps during a period of growth. It is usually designed to be repaid in the short- to medium-term, once the business and properties are back to operating close to full capacity.

Why you need Rangewell to find finance for your holiday homes

As a property owner, many lenders will be happy to lend to you to buy or develop property in the UK.

Buying or improving property abroad can be more of a problem. Many lenders are simply not able to provide any kind of funding for property outside the UK. At Rangewell, we know those that are.

Whether you have a straightforward, small-scale funding need for a single property, or require a complicated ‘Jigsaw’ funding plan made up of a combination of financial products for a major holiday home development in Britain or overseas, we can work with you to find the answers.

Call us now to get our experts working for you to find the most appropriate and affordable funding for holiday lets.

Discover our range of finances

Every type of finance for every type of business

Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.

Helping you build your profits

  • A unique finance resource
    At Rangewell we can help you find the most appropriate finance for any funding need your holiday home business requirements.
  • Funding property in the UK and beyond
    Conventional solutions make it difficult to fund holiday homes purchases in the UK and impossible overseas. We can find solutions that make it simple.
  • Building a lucrative business
    You need to offer top facilities to steer clear of voids. We can help you find ways to pay for the fixtures and fittings you need.
  • Tailored to your needs
    Your business is unique and so are your funding needs we will work with you to tailor the solutions you must have.
  • Releasing the value in your business
    A Goodwill Loan can allow you to benefit from the work you have out into building your business, without putting your business at risk.
  • Specialist lenders
    Some asset funding providers specialise in particular sectors. At Rangewell, we can help you find the most appropriate lenders for your holiday business needs.

Download Rangewell’s free and detailed guide to Property Finance

What types of Property Finance are there - which is right for you?

Why not all providers are equal

How we can help you pay less

The downsides to Property Finance - and how to avoid them

How to arrange Property Finance - What paperwork do you need?

Key terms explained

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You may need an investment fundIf you take out an interest only mortgage you may need to arrange an investment which will allow you to pay off the loan.
Costs could increaseInterest rates will fluctuate on a Buy to Let mortgage. You must ensure that your rental income would cover your interest if rates increased.
Professional advice is essential There are tax and regulatory issues which may affect any Buy to Let investment in the future. Professional advice is essential

Our service is:


Transparent and independent, treating all lenders equally, finding the best deals.


Every type of finance for every type of business from the entire market - over 300 lenders.


Specialist Finance Experts support you every step of the way.


We make no charge of any kind when we help you find the loan you need.