Holiday Let Portfolio Mortgages Devon
Specialist commercial mortgages for FHL (furnished holiday let) portfolios across Devon, the English Riviera and Torbay, the Dartmoor and Exmoor national parks, the South Hams and the wider coast. Aggregated facility across 3+ properties on occupancy-and-ADR underwriting. LTVs to 70%, mid-2026 rates 7.0–9.0% pa. Mainstream commercial desks largely do not engage, wrong desk first time loses six weeks.
LTV
Up to 70%
Cover test
DSCR 130–145%
Rate range
7.0–9.0% pa
Facility
£300K–£3M
Underwriting an FHL portfolio commercial mortgage
FHL (furnished holiday let) properties qualify for distinct treatment, they are commercially-let assets generating short-stay holiday income rather than long-term residential rent. Lender underwriting tests four variables. Average occupancy across the calendar year (sustained 50–60%+ is the threshold). Average daily rate (ADR) by season. Seasonality, strong-season weeks at high ADR matter as much as headline annual figure. Platform mix, Airbnb, Booking.com, direct, plus owner-managed versus agent-managed.
Most FHL portfolio lenders need 3+ properties to consider portfolio-refinance pricing. Single-asset FHL routes through specialist BTL with FHL product (different pool, different logic). Portfolio underwriting tests aggregated DSCR at 130–145% across all properties, the diversification of income across multiple FHLs gives lenders comfort that one bad season at a single property does not break the portfolio.
Active FHL territory in Devon: the English Riviera (Torquay, Paignton, Brixham), the South Hams coast (Salcombe, Dartmouth, Kingsbridge), the Dartmoor and Exmoor national parks, the East Devon coast (Sidmouth, Budleigh Salterton) and the North Devon surf coast (Croyde, Woolacombe, Bideford). Devon is one of the largest holiday-let markets in England, and the stock is typically 2–5 bedroom converted barns, cottages, former farmhouses and coastal apartments commanding £150–£400 per night at peak, with some Salcombe and Dartmoor properties materially higher. Coastal towns also carry distinct B&B and boutique-hotel stock that overlaps with FHL economics.
Worked example: a 4-property FHL portfolio on the South Hams coast, three converted cottages and one barn conversion, £1.65M aggregate valuation, £148K aggregate annual gross income, 62% blended occupancy, mixed Airbnb-and-Booking.com let. LendInvest placed at 65% LTV, 8.85% pa on a 5-year fix, 25-year term, aggregated DSCR 138%. Worked example two: a 3-property FHL portfolio plus an owner-occupied B&B on the Dartmoor edge near Tavistock, mixed structure, placed via Together at 60% LTV, 9.25% pa, treating the B&B as trading-business with operator residence.
Holiday-let portfolio assets we fund
Single-asset FHL
Single property let on FHL basis, typically rural or market-town location. Routes through specialist BTL with FHL product rather than portfolio facility.
FHL portfolio (3+ properties)
Aggregated portfolio facility for 3+ FHLs in same broad geography. DSCR-led, blanket-charge or property-by-property structure.
B&B and boutique guesthouse
Operator-owned overnight-stay business; trading-business overlap with leisure category. Operator-occupied B&B routes through trading-business mortgage.
Farm and barn conversion FHL
Smallholding and barn conversion to FHL, active across rural Devon and the Dartmoor and Exmoor fringes. Bridge-to-let plus term-out onto FHL portfolio mortgage.
Coastal and moorland cottage FHL
South Hams, East Devon and North Devon coast plus Dartmoor and Exmoor stock; specialist rural and coastal lender appetite. Salcombe, Dartmouth, Sidmouth, Croyde.
Aparthotel and serviced apartment portfolio
Multiple serviced apartments under single management; overlap with leisure category.
Finance structures for FHL portfolios
FHL commercial mortgage on a portfolio basis is the primary route for 3+ properties. Single-asset FHLs route through specialist BTL or commercial investment. Operator-occupied B&Bs route through trading-business mortgage with operator-residence allowance.
FHL portfolio mortgage
3+ FHL properties aggregated under a single facility. DSCR-led at 130–145% on blended income.
Trading-business mortgage
Operator-occupied B&B or guesthouse, EBITDA, occupancy and ADR underwritten.
Commercial bridge-to-let
Acquisition plus refurbishment of property for new FHL use; term-out onto FHL portfolio once stabilised.
Commercial remortgage
End-of-fix or capital raise across an established FHL portfolio.
The Devon FHL market
Devon is one of the largest holiday-let markets in England, and the stock concentrates along the coast and across the two national parks. The English Riviera (Torquay, Paignton, Brixham), the South Hams coast (Salcombe, Dartmouth, Kingsbridge), the East Devon coast (Sidmouth, Budleigh Salterton) and the North Devon surf coast (Croyde, Woolacombe) carry the premium FHL stock, alongside the Dartmoor and Exmoor conversion market around Tavistock, Bovey Tracey and Lynton. Demand drivers: the staycation market, the national parks and the coast as destination, and a tourism economy that ranks among the largest in the country. Stock typically 2–5 bedroom converted barns, cottages, former farmhouses and coastal apartments commanding £150–£400 per night at peak, with Salcombe and prime Dartmoor properties higher still.
Lender appetite for FHL portfolios
<strong>LendInvest</strong>, Together and Hampshire Trust Bank are the most active specialist FHL portfolio lenders. Cumberland Building Society engages on rural and coastal stock with strong sector knowledge. Cambridge & Counties covers larger portfolios (5+ properties, £2M+ aggregate facility). Select private credit on more complex structures. Mid-2026 pricing 7.0–9.0% pa at 60–70% LTV. Mainstream commercial desks (NatWest, Lloyds, Barclays, Santander) largely decline FHL outright, they treat short-stay income as too volatile. Specialist BTL desks (Paragon, Aldermore, Foundation Home Loans) cover single-asset FHL but not portfolio-aggregated structures. Get the right specialist first time, wrong desk loses six weeks.
Holiday-Let Portfolio FAQs
Developing a holiday-let portfolio scheme in Devon?
Free-of-charge scheme assessment. Indicative terms within 48 hours.