Remortgaging a Holiday Let on the Isles of Scilly
Remortgaging A Holiday Let
Your property may be repossessed if you do not keep up repayments on your mortgage.
A fee of up to £495 per mortgage may be charged depending on individual circumstances.
The Financial Conduct Authority does not regulate most Buy to Let Mortgages.
There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.
The information contained within was correct at the time of publication but is subject to change.
16th December 2025
Sam and Leah are returning clients who I previously helped arrange a mortgage for their holiday let on the Isles of Scilly. As their five year fixed rate was coming to an end, they wanted to review their options and secure a new deal for the next couple of years.
Both clients are in their 50s. Sam has a portfolio of buy to let properties alongside a healthy level of investment income, while Leah is employed in a standard PAYE role. Their situation is relatively straightforward financially, but the nature and location of the property meant the remortgage required careful planning.
Looking At Their Options
The property is a luxury four bedroom holiday let located on the Isles of Scilly. Due to its island location and holiday let status, many lenders are unable to assist. Some lenders will not lend on properties that are not on the mainland, while others do not support holiday let income at all.
Another practical consideration was the valuation. As there was no suitable local surveyor on the island, the valuer needed to be flown in, which added an extra layer of coordination to the process.
Sam and Leah were in a strong position overall, with a loan to value of around 50 percent. Their income comes from a mix of property rental, investments, and employed income, and they have a good credit profile with no concerns. However, they were already on their existing lender’s variable rate, so it was important to move quickly and secure a new fixed rate.
At the time, the market was challenging for more niche cases like this. There were only a small number of lenders willing to consider a holiday let on the Isles of Scilly, which meant focusing on more bespoke building societies that take a flexible and manual underwriting approach.
The Recommendation
Sam and Leah were clear that they wanted a two year fixed rate. They prefer to review their mortgage regularly and did not want to commit to a longer term deal.
After reviewing the limited options available, a two year fixed rate with a lender comfortable with holiday lets, island properties, and income from investments was the most suitable solution. This allowed them to regain payment certainty while keeping flexibility for the future.
The Outcome
The application progressed smoothly despite the property’s unique characteristics. Sam and Leah were pleased to secure a new fixed rate, and the process was relatively straightforward once the right lender had been identified.
They now have the reassurance of predictable monthly payments and the freedom to review their options again in two years time.
Do You Own A Holiday Let or Have Non Traditional Income?
If you own a buy to let or holiday let property and are approaching the end of a fixed rate, or if your income comes from a mix of investments, rental properties, or other non traditional sources, I can help you explore your mortgage options.
Get in touch today to discuss your circumstances and see what might be possible.