InterBay Commercial launched a range of holiday let products with rates starting from 3.84 per cent.
These products are aimed at personal ownership and limited company landlords looking to let out properties on a short-term holiday-let basis to meet the recent growth in demand. Loan sizes range from £50k up to £1m, with no maximum property value.
An interest-only option is also available and minimum ICR and stress rate requirements are 140 per cent using gross rent, with rent calculations based on a letting period of 30 weeks a year at an average of the low, mid and high season rates.
Market Harborough Building Society released a range of holiday-let products for simple and complex cases. This includes variable rates of 3.49 per cent for simple applications and 4.24 per cent for complex cases, with fixed rates available on request. The range is available for cases between £200,000 and £3m, up to a maximum 75 per cent loan to value (LTV) and is suitable for expats, applications involving Airbnb rentals and unusual properties such as multi-units or large acreage.
Staying within the mutual community, the Cambridge Building Society reintroduced a number of holiday-let mortgages. Notable products include a 75 per cent LTV two-year discount at 3.39 per cent and a 75 per cent LTV five-year fix at four per cent. Both offerings include a completion fee of £1,500 and early repayment charges.
Owners will be able to stay 90 days per year in the properties. In addition, Furness Building Society added to its holiday-let range via two five-year fixed rate products at 65 per cent and 75 per cent LTV, priced at 3.89 per cent and 4.29 per cent respectively. Both products include a fee of £1,250 which can be paid upfront or added to the loan.
This isn’t the only niche area of the BTL market which has seen activity levels rise over the past month. The Mortgage Works (TMW) launched a green further advance mortgage range, designed to support landlords in making their properties more sustainable. A rate of 1.49 per cent is available for loans of between £2,500 and £15,000 up to a maximum 75 per cent LTV, all of which come with no product fees. Landlords can opt for a two- or five-year fixed product, with rates for those making green improvements to their property up to 50 per cent lower than standard further advance rates. The whole loan must be used to fund a range of sustainable home improvements, including the addition of solar panels, window upgrade/replacement, boiler upgrade, air source heat pumps and electric car charging points.
Keystone Property Finance also released a product range for landlords with energy efficient properties. This is priced at 15 basis points lower than the lender’s core products and they will be available on properties which are five years or older with an energy performance certificate (EPC) rating of A to C. The green range is available for purchase or remortgage purposes and can be secured on all properties, including houses in multiple occupation (HMOs) and multi-units. The loan size ranges from £50,000 to £1m.
I’m not ignoring the large volume of product changes and criteria tweaks made across a highly competitive mainstream BTL marketplace, but in a time when landlords are looking to diversify and assess property-related costs, these areas represent interesting opportunities and viable options for many.