Property type: Holiday Let
Holiday Let Bridging Loans Southampton
We arrange bridging finance against holiday lets and short-stay property across Southampton, Ocean Village marina, the Town Quay gateway to the Isle of Wight ferries, and the wider Hampshire coastal-and-rural holiday-let market through the Solent and the New Forest. Loan sizes run £150,000 to £2.5 million, terms 6 to 18 months, completions in 7 to 21 days. Holiday-let bridging is unregulated investment lending; pricing sits 0.8 to 1.25% per month depending on rental evidence and the credibility of the exit.
- Decisions in hours
- Completion in days
- £100k to £25m
- Hampshire specialists
Southampton · Hampshire
Bridge to your next move.
The asset class
What holiday let property looks like in Hampshire.
Holiday-let property covers self-catering apartments and houses, converted properties marketed through Sykes Cottages, Holiday Cottages, Airbnb and direct booking, larger holiday cottage portfolios held by single owners or small operators, and the small B&B and guesthouse stock that sits between holiday let and small-hotel. The income profile is seasonal, with peak summer-and-half-term rates running materially ahead of off-season, though Southampton-specific cruise-passenger and ferry-passenger demand adds a more even profile to certain locations. Lenders read the rental evidence on a 12-month basis with a discount for void weeks and management costs. The asset reads as an investment property with a specialist income overlay.
Use cases
Bridging use cases for holiday let assets.
Holiday-let bridging cases in this market cluster around four patterns. The first is purchase of an apartment or house with the intention of marketing as a short-let, where the bridge funds the purchase plus a refurbishment to short-let standard, with the exit to a specialist holiday-let BTL mortgage once the rental evidence is established. The second is refurbishment-and-reposition cases where an existing holiday let is bought and upgraded to a higher rate band, with the exit to refinance at stabilised income. The third is capital raise against an unencumbered holiday-let portfolio held by an established operator, often to fund the deposit for the next acquisition. The fourth is conversion plays where a former office, mixed-use or even retail building is bought and converted to multiple holiday-let units, particularly common around the Ocean Village marina edge. Lenders care about location, rental evidence, the operator's track record and the realism of the holiday-let BTL refinance exit.
Southampton context
Marina-Side Holiday Lets, Isle of Wight Ferries and the New Forest Gateway
Southampton holiday-let demand sits on a base that is materially different from most equivalent UK cities. The cruise terminals at Mayflower, Ocean, QEII and Horizon drive close to two million passenger movements a year, with embarkation-night and disembarkation-night short-stay demand running ahead of any other south-coast city. Ocean Village marina has emerged as one of the stronger marina-side short-let markets in the south, with apartment stock fronting the marina basin commanding firm summer-and-event rates and a more even off-season profile from cruise and corporate-visitor demand. Town Quay is the departure point for the Isle of Wight ferries operated by Red Funnel, with vehicle and passenger services to East Cowes feeding a steady stop-over short-let market across the city centre. Hythe Ferry passengers add a smaller flow. Beyond the city, the Hampshire coast carries an established holiday-let market: the New Forest National Park, with Beaulieu, Lyndhurst, Brockenhurst and Lymington running a rural cottage market; the Solent coastline through Hamble, Bursledon and the marinas; and the wider Test Valley running a small but stable rural holiday-let belt. Sykes Cottages, Holiday Cottages and the wider holiday-let agency network all have meaningful stock across this geography. Bridging lenders price holiday-let in the Southampton and Hampshire coastal catchment confidently where the borrower has rental evidence from a recognised agency or a credible projection.
Valuation and lenders
Valuation and lender considerations.
Holiday-let valuations come back on a residential comparable basis for the underlying property, with the holiday-let income recognised by some lenders for stress-test purposes on the refinance exit. Bridging lenders lend on the underlying residential value rather than any holiday-let investment uplift, with LTV caps sitting at 70 to 75% on stabilised holiday lets and 65 to 70% on conversion or refurbishment cases. MT Finance, Octane Capital, Roma Finance, LendInvest, Hope Capital, Octopus Real Estate, Together and United Trust Bank all take holiday-let bridging. Specialist holiday-let BTL lenders for the refinance exit include Cumberland Building Society, Furness Building Society, Hodge and the dedicated holiday-let products at Precise Mortgages and Kent Reliance.
What we arrange
What we typically arrange.
A typical holiday-let bridge sits at £200,000 to £900,000, 70 to 75% LTV, 6 to 12 months term, 0.85 to 1.15% per month, arrangement fee 1.5 to 2%. Refurbishment cases include a works tranche. Exit is to specialist holiday-let BTL refinance, sale to an investor, or roll-up into a larger portfolio refinance. We work with holiday-let-specialist BTL brokers to package the refinance alongside the bridge so the exit is committed before drawdown.
FAQs
Holiday Let bridging questions
Can we bridge a holiday-let purchase at Ocean Village marina?
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Yes. Ocean Village marina apartments are a regular part of the holiday-let book given the cruise-passenger flow, the corporate-visitor base and the year-round marina-side draw. Lenders typically lend on underlying residential value at 70 to 75% LTV, with the holiday-let income recognised on the refinance exit rather than the bridge itself. Refurbishment to current short-let standard, including kitchen, bathrooms, soft furnishings and EPC works, is funded through the works tranche. Exit to specialist holiday-let BTL at 9 to 12 months is the usual route.
How do BTL lenders treat holiday-let income on refinance after a bridge?
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Specialist holiday-let BTL lenders recognise holiday-let income for stress-test purposes, typically requiring 12 months of trading evidence or a recognised agency projection. The exact rental cover and stress test varies by lender. We sequence the bridge so that by month 9 to 12 the trading evidence supports the refinance test cleanly. Where evidence is shorter, the lender pool narrows and the rate moves up, but the refinance is still achievable on the right asset.
What rate range applies to holiday-let bridging across the Hampshire coast and New Forest?
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Stabilised holiday lets with strong rental evidence and a clear refinance exit price at 0.8 to 0.95% per month at 70 to 75% LTV. Refurbishment and conversion cases price 0.95 to 1.2% per month at 65 to 70% LTV. Arrangement fees are 1.5 to 2%. Locations with year-round tourism evidence, particularly the marina-side stock and the New Forest national-park belt, price softer than locations with a tighter seasonality pattern, reflecting the rental-cover comfort the refinance exit will need to demonstrate.
Tell us about the deal
Indicative terms within 24 hours.
A short triage call, then a sized indicative offer against a named lender for your holiday let property in Southampton or across Hampshire.
Regulated bridging on owner-occupied residential property falls under FCA regulation. Unregulated bridging on commercial and investment property does not. We are not directly regulated by the Financial Conduct Authority, and we introduce regulated cases to authorised partners who carry out the regulated activity.
Next step
Talk to a Southampton holiday let bridging specialist.
We arrange short-term finance on holiday let property across Southampton, the City of Portsmouth unitary authority and the wider Hampshire market. Indicative terms in 24 hours.