Loughborough Building Society Launches Holiday Let Mortgage
Loughborough Building Society has added Holiday Let to their mortgage range.
The product is available for the purchase or re-mortgage of properties in England and Wales that are managed by a letting agent and used for short term holiday letting. This includes Airbnb.
At 75% LTV, the rate is a two year 1.95% variable discount, currently 3.39% with a £499 completion fee. ERCs apply during the product term.
Affordability is calculated by using the average of high/low season projected or known rental yield with the standard BTL ICR of 130% at 5.5%.
The owners will be able to use the property for their own use for 60 days each year.
The product is not available to Limited Companies or Portfolio Landlords.
Ashley Pearson, BDM at The Loughborough said, “Since the Coronavirus pandemic, overseas travel has become more difficult for many and the possibility of quarantine on return to the UK makes it almost impossible for most who are working. Holidaying in the UK has always been a great option so Holiday Let is an obvious next step for us”.