Holiday Let Mortgages in Northern Ireland: A complete guide for property investors

From the Causeway Coast to the Mourne Mountains, Northern Ireland offers a range of attractive locations for investors interested in Holiday Let properties. Whether you already own a Holiday Let in Northern Ireland and are looking to release further funds, or you're considering a new investment, this guide is for you.

In this guide, we’ll explain how Holiday Let Mortgages work, the key considerations for investors, and how Mercantile Trust can help you finance your next short-term let property.

What is a Holiday Let Mortgage?

A Holiday Let Mortgage is a specialist loan used to purchase or refinance a property intended for short-term rental to holidaymakers rather than long-term tenants. Unlike traditional Buy to Let Mortgages, Holiday Let Mortgage must account for seasonal income fluctuations and stricter affordability requirements.

Why invest in Holiday Lets in Northern Ireland?

Northern Ireland is uniquely positioned for the holiday let market due to:

• Tourism appeal – Coastal areas, heritage sites, and outdoor activities attract a steady flow of domestic and international visitors.
• Staycation trends – Demand for UK-based travel remains strong.
• Rental income potential – Well-located holiday lets can often generate higher yields than standard buy to lets, especially during peak seasons.

Key Features of a Holiday Let Mortgage

Here are the standard features you should expect with a holiday let mortgage:

• Short-term let income assessment rather than long-term tenancy
• Specialist underwriting to accommodate seasonal voids
• Higher deposit requirements than standard BTLs (typically 25–35%)
• Limited company or personal ownership options

Mercantile Trust Criteria for Holiday Let Mortgages

At Mercantile Trust, we take a flexible, common-sense approach to lending, supporting both first-time and experienced landlords looking to enter or expand in the holiday let market.

 Lending Criteria Highlights:

• Loan size: From £10,000 to £150,000
• Loan term: Up to 30 years (interest-only or capital repayment)
• Max LTV: Up to 70% of the property’s open market value
• Property types: Freehold, leasehold, apartments, cottages, and converted barns considered
• Borrower types: Individuals, SPVs, limited companies, LLPs
• Locations: Properties across Northern Ireland, including rural and coastal areas
• Credit profile: Adverse credit considered on a case-by-case basis
• Holiday let use: Property must be available for short-term letting for a minimum number of weeks annually

Advantages of Working with Mercantile Trust

• No credit scoring: Every application is manually assessed by our underwriters
• Speed: Fast turnaround times for both purchases and remortgages
• Adverse credit welcome: CCJs, defaults, or arrears considered
• Human approach: We work with brokers and direct applicants to structure deals that work

Holiday Let Mortgage Tips for Northern Ireland Investors

1. Location matters – Proximity to key attractions and access to transport links are essential for consistent bookings.
2. Seasonality planning – Budget for quieter months, especially outside summer or festive seasons.
3. Licensing & regulations – Ensure you comply with any local tourism regulations and safety requirements.
4. Use a letting agent – Consider professional management to reduce voids and maintain standards.

Get Started with Your Holiday Let Mortgage

Whether you’re buying a new holiday let in Portrush or refinancing a short-term let near Strangford Lough, Mercantile Trust can help you find the right mortgage solution.

Speak to our team today or fill the enquiry form to take the next step in your holiday let investment journey.