This include increasing the maximum loan-to-value (LTV) limit from 75% to 80% and the maximum loan size from £1.5m to £2m.
Hodge Bank has also removed the restriction of the six-bedroom limit for properties.
The lender said staycations had become more popular and landlords were looking to do more with rental properties, as demand for larger properties with more amenities rises.
The lender said there was rising demand for more bedrooms, recreational areas and pools.
Emma Graham, business development director for Hodge Bank, said the changes were a “vital next step” for its holiday let range and would be welcomed by landlords.
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Graham added: “How we holiday is changing and that means the holiday let market has to adapt. Brokers are telling us landlords want to cater for bigger groups, whether that’s intergenerational family holidays, or groups of friends looking for a fully equipped Airbnb.
“Hodge offers fee free options on both holiday let two- and five-year basis, as we want to give those operating in the holiday let market as much flexibility as possible to suit each individual’s needs.”
The lender said its changes were also welcomed by brokers, with Billy McCluskey, head of sales for Commercial Trust, saying: “It’s fantastic to see Hodge take a major step into the 80% LTV holiday let market. With fewer lenders operating in this space, its move is a real boost for our landlords. At Commercial Trust, we know Hodge’s proposition can deliver substantial savings for our clients while offering the reassurance of partnering with a highly dependable lender.”
Last month, Hodge Bank became the latest company to sign the Mortgage Industry Mental Health Charter (MIMHC).
