Mansfield Building Society has launched a holiday buy-to-let product.
Specifically designed for borrowers seeking to purchase or remortgage a holiday let property, the three-year discounted product is offered with a 70 per cent loan-to-value (LTV) at a current rate of 3.65 per cent.
Properties must have a minimum value of £150,000 and qualify as a furnished let under HM Revenue & Customs rules.
The Mansfield also allows owners to reside in the holiday let for up to 60 days a year, providing an opportunity for those who wish to buy an investment property to use as a holiday home too.
Paul Lewis, national development manager at the Mansfield, said: "The increase in stay-cations in the UK means that landlords can now consider redirecting their resources to alternative property investments that could help dilute or offset the effects of a poor Brexit."
Affordability is calculated by taking into account the average of low, mid and high season takings, plus any surplus earned income or personal wealth.
The product is not available for those seeking mortgages on holiday parks or complexes, B&Bs, AirBnB and properties subject to title, local or occupancy restrictions.
Carl Shave, director at Suffolk-based Just Mortgage Brokers, said: "The buy-to-let market continues to evolve under the pressure of changing tax laws and restrictive lending criteria.
"With lenders and landlords alike looking for alternative propositions to increase their business it is a pleasing sign that the Mansfield Building Society have recognised an area of potential in the holiday let sector. Still a relatively niche product in its availability this gives another decent option to those would be holiday let investors and one that is welcomed to the industry."
aamina.zafar@ft.com
