Holiday let deposit and LTV calculator
Enter the price and loan to value to see the loan, the deposit and the deposit as a percentage of the price.
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Illustrative only. Not a quote or advice. Not an offer of finance.
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How the holiday let deposit and LTV calculator works
We take the purchase price and your chosen loan to value to split the purchase into a loan and a deposit. The loan is the price multiplied by the loan to value. The deposit is whatever is left, which is the price minus the loan. The deposit percentage is simply one hundred minus the loan to value, so a 70 percent loan to value means a 30 percent deposit.
The formula is loan equals price multiplied by loan to value divided by one hundred. The deposit equals price minus loan. The deposit percentage equals one hundred minus the loan to value. There is no interest or term involved here, so the result holds whatever rate you eventually agree.
Why loan to value matters on a holiday let
Loan to value drives both the cash you need on day one and the rate a lender offers. Lower loan to value means a smaller loan, a larger deposit and usually a sharper rate, because the lender is more comfortable. Most holiday let and serviced accommodation deals land between 65 and 75 percent loan to value, with strong projected short-let income and a good track record supporting the top of the range. If you want to model the monthly cost as well, use our holiday let mortgage calculator.
Worked example
On a 450,000 pound holiday let at 70 percent loan to value, the loan is 315,000 pounds and the deposit is 135,000 pounds, which is 30 percent of the price. Drop the loan to value to 65 percent and the deposit rises to 157,500 pounds. We are happy to look at the wider deal and tell you which loan to value is realistic for your property and the projected income behind it.
Holiday let deposit and LTV calculator: common questions
How much deposit do I need to buy a holiday let?
On most holiday let mortgages the deposit is 25 to 35 percent of the price, because lenders typically fund 65 to 75 percent of the valuation. On a 450,000 pound property at 70 percent that is a 135,000 pound deposit. Adjust the loan to value in the calculator to see how the deposit changes.
What is loan to value on a holiday let?
Loan to value is the loan as a percentage of the price or valuation. On a holiday let the valuation rests on the property and the short-let income it can realistically achieve from the nightly rate and occupancy. A 70 percent loan to value on a 450,000 pound property is a 315,000 pound loan and a 135,000 pound deposit. Lower loan to value usually means a better rate, because the lender carries less risk.
Can I borrow more than 75 percent on a holiday let?
Sometimes. Strong projected short-let income, a track record and additional security can lift the figure, while a property in a quieter location or with limited letting history usually sits lower. Send us the deal and we will give a realistic view.
Want a real view on your deposit?
Send us the deal and we will come back with a view on fundability and likely loan to value within one working day.