"We understand that brokers need more than just products — they need support from experienced professionals who can think outside the box."
The UK holiday let market has experienced a notable surge in demand in recent years, driven primarily by the pandemic’s impact on domestic tourism. Although international travel has rebounded, a significant number of UK travellers continue to favour holidays within the country. A 2024 analysis by MoneyTransfers.com found that 72% of Brits still prefer staycations, despite the reopening of global travel. With domestic holidays remaining popular, there has been increased interest in unique, high-quality experiences closer to home. This trend has motivated property investors to explore holiday lets in scenic locations such as coastal towns, National Parks, and popular tourist hotspots.
Although holiday let mortgage applications have risen substantially - by 23% compared to pre-pandemic levels, according to a 2024 Moneyfacts report - upcoming changes to the taxation and regulatory landscape for furnished holiday lets (FHLs) are set to reshape the market. From April 2025, new tax rules and licensing requirements will place a stronger emphasis on compliance, encouraging landlords to professionalise their operations while enhancing the quality of offerings. Investors are increasingly seeking properties that stand out, whether through luxury amenities, heritage charm, or proximity to key tourist attractions.
These shifts in the market are also increasing the complexity of cases brokers handle, requiring tailored financing. As someone who has worked on many holiday let transactions, I know that a cookie-cutter approach doesn’t work. That’s why The Cumberland’s flexible lending solutions, combined with our in-depth knowledge of the holiday let market, make all the difference when handling challenging deals. A prime example of this is the £1.1m Eyemouth grain mill deal - a fascinating and unique project that we helped bring to life.
The £1.1m Eyemouth grain mill deal
Mike and Elina James approached us via Enness Global with a complex but exciting project: a beautifully restored grain mill near Eyemouth in the Scottish Borders. Originally purchased as a derelict property in 2017, the mill had undergone extensive renovations, blending its historic industrial features with luxurious modern touches. It even earned a runner-up spot on Scotland’s Home of the Year.
The couple sought financing to finalise the holiday let project and release equity to fund the restoration of a second property - a 19th-century church they intended to convert into their new family home. Despite the property’s potential, the couple had faced challenges securing a deal from other lenders due to the lack of comparable valuations in the area and the absence of a holiday let licence at the time of application.
This is where our team at The Cumberland stepped in. We pride ourselves on being more than just lenders - we’re problem solvers. Working closely with Tamara Crowson, head of Scotland at Enness Global, who introduced the case, we structured a bespoke £1.1m financing package, including an interest-only five-year fixed rate that provided the Jameses with financial stability and flexibility.
One of the main hurdles was the missing short-term let licence, a legal requirement in Scotland for holiday lets. Without it, the property couldn’t legally operate as a holiday let. To overcome this, we made obtaining the licence a condition for releasing the funds while continuing with other key processes, such as the valuation and legal checks. By keeping the lines of communication open and ensuring that every step was clear, we successfully navigated the deal to completion.
This case was a perfect example of how The Cumberland’s flexible, personalised approach and our willingness to collaborate with brokers and borrowers can lead to successful outcomes, even for highly complex cases.
Kinder Banking in action
At The Cumberland, we believe in Kinder Banking — an approach centred on building genuine relationships, listening to our clients, and tailoring solutions to fit their unique needs. This ethos was at the heart of our work on the Eyemouth deal.
For brokers, having a lender who prioritises open communication and quick decision-making is crucial. Throughout this transaction, Tamara and Linda Slinger, intermediary relationship manager at The Cumberland, maintained close contact, ensuring any potential challenges were quickly addressed. This collaborative, relationship-driven approach is what we strive to offer in every deal we do.
We understand that brokers need more than just products — they need support from experienced professionals who can think outside the box. Our Kinder Banking ethos ensures that brokers have direct access to us, helping to move cases forward efficiently and with confidence.
With over 20 years of experience in the holiday let market, The Cumberland has built a strong reputation for handling complex and unique. Operating across Scotland, England, and Wales, we offer flexible lending criteria — up to 75% LTV, interest-only options, and products suitable for sole traders, partnerships, and limited companies. Our bespoke underwriting approach ensures each case is assessed individually, while our dedicated broker support team provides expert guidance to help brokers achieve the best outcomes for their clients. Whether it’s a traditional coastal cottage or a distinctive high-value asset, The Cumberland is well-equipped to support brokers with specialist holiday let financing.
The Eyemouth grain mill deal is just one example of how we’re helping brokers and their clients bring unique projects to life. Whether it’s a coastal retreat, a National Park hideaway, or a historic city bolthole, we’re here to help brokers navigate the complexities of holiday let financing with confidence.
