Hodge Bank has increased its maximum loan-to-value ratio for holiday let mortgages from 75 percent to 80 percent, giving landlords greater borrowing power as the staycation market continues to expand.
The lender has also raised its maximum loan size from £1.5 million to £2 million and removed the previous six-bedroom property limit – responding to growing demand for larger holiday rentals that can accommodate extended families or groups.
Larger properties in demand
Emma Graham, business development director at Hodge Bank, said the criteria changes reflected shifting holidaymaker preferences. “How we holiday is changing and that means the holiday let market has to adapt,” she said.
Graham added that brokers were reporting landlord interest in properties with additional amenities. “Brokers are telling us landlords want to cater for bigger groups, whether that’s intergenerational family holidays, or groups of friends looking for a fully equipped Airbnb.”
This follows Landlord Knowledge’s coverage of several lenders easing BTL criteria in recent weeks, signalling competitive pressure to attract landlord business despite broader market uncertainty.
Fee-free options on two and five-year fixes
Hodge Bank offers fee-free options on both its two-year and five-year holiday let products, which the lender says provides flexibility for landlords operating seasonal businesses.
Billy McCluskey, head of sales at Commercial Trust, welcomed the move. “It’s fantastic to see Hodge take a major step into the 80 percent LTV holiday let market,” he said. “With fewer lenders operating in this space, its move is a real boost for our landlords.”
What this means for landlords
- If you’re buying or remortgaging a holiday let: The higher 80 percent LTV means you can acquire a property with a smaller deposit – or release more equity from an existing one.
- Watch for: The new £2 million loan cap opens doors for premium locations like Cornwall, the Lake District or Scottish Highlands where property prices have surged.
- Bottom line: Removing the bedroom cap signals Hodge is targeting the higher-yield end of the market where landlords can charge group rates.
Editor’s view
The staycation boom that started during Covid has matured into a permanent shift in British holidaying habits. Hodge’s criteria expansion is a clear bet on that trend continuing – and a reminder that specialist lending markets can move in the opposite direction to mainstream residential when they see opportunity.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 30 March 2026
Sources: Hodge Bank, Commercial Trust
Related reading: Wales passes holiday let licensing law as industry warns of regulatory burden
