Property type: Holiday Let
Holiday Let Bridging Loans Devon
We arrange bridging finance against holiday lets and short-stay property across the South Hams premium belt (Salcombe, Dartmouth, Kingsbridge), the Torbay English Riviera, the North Devon surf coast around Croyde, Saunton and Woolacombe, the Jurassic Coast east Devon market (Sidmouth, Budleigh Salterton, Beer) and the Dartmoor cottage market. Devon is one of the top three holiday-let counties in the UK and the underwriting depth in this market reflects that. Loan sizes run £150,000 to £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
- Devon specialists
Devon · Devon
Bridge to your next move.
The asset class
What holiday let property looks like in Devon.
Holiday-let property in Devon covers self-catering coastal apartments and houses, converted cottages marketed through Sykes Cottages, Toad Hall Cottages, Coast & Country Cottages, Holiday Cottages and Airbnb, 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 South Hams premium belt sits at the top of the UK holiday-let yield table, with Salcombe and Dartmouth properties earning some of the highest per-week peak-season rates in the country. The North Devon surf coast carries a strong April-to-October seasonality with high peak rates and shoulder-season demand from surfers, walkers and family visitors. The Jurassic Coast east Devon belt runs a more even year-round older-visitor base. The Dartmoor cottage market trades on walker, climber and National Park tourism through the year. Lenders read the rental evidence on a 12-month basis with appropriate seasonality adjustments, and 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 Devon cluster around four patterns. The first is purchase of a coastal apartment, cottage or house with the intention of marketing as a short-let through Sykes, Toad Hall or one of the regional agencies, 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, particularly in the Salcombe and Dartmouth premium belt where a strong refurbishment can lift a property from the £2,500-per-week peak rate band to the £4,500-plus band. 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 barn, office or even small commercial building is bought and converted to multiple holiday-let units, with the bridge funding the purchase plus the works; the Dartmoor barn-conversion market sits firmly in this category. Lenders care about location, rental evidence, the operator's track record and the realism of the holiday-let BTL refinance exit.
Devon context
Holiday-Let Demand from Salcombe to Croyde and the Dartmoor Cottage Market
Devon holiday-let demand sits on one of the strongest tourism bases in the UK. The South Hams premium belt, Salcombe, Dartmouth and Kingsbridge, carries among the highest holiday-let yields in the country. Salcombe properties on Cliff Road, Bonaventure Road and the harbour-side terraces command peak summer rates of £3,500 to £6,000 per week for four-bedroom waterfront stock, with year-round letting weeks supported by the half-term and shoulder-season demand. Dartmouth runs a similar high-end market around Foss Street, the Embankment and the South Town belt. Kingsbridge and the surrounding South Hams villages run a steadier premium-cottage market. The Torbay English Riviera, Torquay, Paignton and Brixham, runs a high-volume holiday-let market with self-catering apartment buildings, harbour-side cottages and family-tourism stock. Brixham harbour and the Berry Head edge carry particularly strong holiday-let demand. The North Devon surf coast around Croyde, Saunton, Woolacombe and Putsborough runs a younger, surf-led market through April to October, with surfer-oriented cottages and family lets carrying strong peak rates and reasonable shoulder-season demand. The Jurassic Coast east Devon belt around Sidmouth, Beer, Branscombe and Budleigh Salterton runs an older-visitor base with smaller cottages and Regency-era seafront apartments, with more even year-round letting. The Dartmoor cottage market trades on walker, climber and National Park tourism through the year, with destination cottages in Lustleigh, Chagford, Widecombe-in-the-Moor and the surrounding villages anchoring the inland holiday market. North Devon coastal stock around Ilfracombe, Combe Martin and the Hartland peninsula adds a fifth dimension. Bridging lenders price holiday-let in the Devon market confidently where the borrower has rental evidence from a recognised agency such as Sykes Cottages, Toad Hall Cottages, Coast & Country or one of the regional Devon agencies, or a credible projection from a holiday-let consultant.
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. The South Hams premium stock attracts the strongest lender pool given the established rental evidence.
What we arrange
What we typically arrange.
A typical Devon holiday-let bridge sits at £250,000 to £1.2 million, 70 to 75% LTV, 6 to 12 months term, 0.85 to 1.15% per month, arrangement fee 1.5 to 2%. South Hams premium cases run higher, with Salcombe and Dartmouth waterfront stock often transacting at £900,000 to £2.5 million-plus. 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 in Salcombe or Dartmouth?
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Yes. The South Hams premium holiday-let market is one of the strongest sub-segments in the book given the year-round letting evidence and the established agency network through Toad Hall Cottages, Coast & Country Cottages and the larger Sykes Cottages programme. 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 from Sykes, Toad Hall or one of the regional Devon agencies. 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 Devon coast?
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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. The South Hams premium belt prices at the softer end of that range given the strength of rental evidence. North Devon surf-coast stock at Croyde and Woolacombe and the Jurassic Coast belt at Sidmouth price similarly where year-round letting evidence supports the case. Refurbishment and conversion cases price 0.95 to 1.2% per month at 65 to 70% LTV. Arrangement fees are 1.5 to 2%. Coastal locations with year-round tourism evidence 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 Devon or across Devon.
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 Devon holiday let bridging specialist.
We arrange short-term finance on holiday let property across Devon and the wider Devon market. Indicative terms in 24 hours.