New mortgages for people who want to purchase or remortgage holiday lets have been launched in the last week.
Teachers Building Society is now offering a two-year discounted variable rate mortgage which is available for people who need to borrow up to 75% of the property’s value.
Meanwhile Newbury Building Society is extending its buy-to-let range and making its first foray into the holiday let market with its three-year discount mortgage, which is also a variable product and available to customers who need 75% loan-to-value (LTV) mortgage.
As well as offering the product to people who are purchasing and remortgaging, Newbury’s product is available to those who need to borrow additional funds where the property is let on a holiday basis for some or all of the year.
Teachers and Newbury are two of only a handful of lenders which now offer specially-designed mortgages for properties which are to be used as holiday homes.
At Teachers, the holiday let products come as the building society opened up its lending to applicants of any profession and increased its lending powers to include borrowers with different types of income – such as police or NHS allowances and overtime.
Following the launch of Teachers’ new mortgage, Mark Stallard from brokers, House and Holiday Home Mortgage, said: “It’s great to see another lender coming into the holiday let lending space. Teachers has a good reputation for helping borrowers in niche areas. There is an ever-growing demand for holiday let borrowing.”
Meanwhile, Newbury explained it would consider the potential holiday let income – as well as other factors such as borrower’s personal income – to help investors see more value from their rental portfolios.
Roger Knight, lending manager at Newbury Building Society said: “The decision to launch a holiday let specific product followed extensive analysis of whether there was appetite for this type of mortgage within our current borrower base as well as listening to feedback from intermediaries who have informed us demand is high.”
