We’re very excited to give you an exclusive preview of a new range of mortgages for holiday let properties coming to market in the final week of June 2021!
With international travel still off the cards for many of us, the UK holiday let industry is booming! A quick flick through any holiday booking site, and you’ll see that many properties are now booked up well into October 2021, and there are already plenty of bookings into 2022.
The hive of activity around this industry hasn’t gone unnoticed; buy to let landlords and lenders alike want in on the action. Next week, another specialist buy to let lender will enter the fray, adding yet more competition to the mortgage interest rates on offer for holiday let properties!
Mortgages for Business are delighted to have permission to share some of the details around this brand-new holiday let mortgage range.
Rates start from 3.34% for a two-year fix and 3.49% for a five-year fixed at 65% loan to value (LTV), though rates do go up to 75% LTV. The lender also offers a larger loan range for loans £200,000 and above, which enjoys a generous cashback incentive, and if your intended holiday let has an EPC rating of A-C, rates start from 3.24%.
Glancing at the current holiday let mortgages available on the market, these new rates are very competitive and could help stir up other lender offerings!
In brief, applications are open to individuals, limited companies, LLPs and portfolio landlords. The property must be furnished and short-term let, which means agreements lasting one night or a maximum of six months. There is a £40,000 minimum income threshold, which could be a prohibitor for some applicants.
Like many lenders, rental coverage is assessed as a standard buy to let. This affordability calculation method works well for many holiday let properties, but it’s worth mentioning that some lenders will base calculations on projected holiday let income which can allow you to borrow more. For more details on this lenders criteria, do get in touch.
If you’d like to know more about this range, or other available holiday let mortgages, do get in touch with me, Deepinder Bhangoo on 01732 471 661 or email me firstname.lastname@example.org, and I’ll be happy to talk through your options.
23rd June 2021