Furness adds discounted holiday-let product to range

Furness is one of just a handful of lenders that offer holiday-let specific mortgages, with others including Leeds and Harpenden Building Societies.

The product is a two-year discount mortgage with a pay rate of 4.89%, with lending considered up to 75% loan-to-value. It carries a fee of £995.

Applicants will now be accepted from anywhere within mainland UK, an expansion on the previous availability in Lancashire, Cumbria and Merseyside.

Steven Bullock, product development manager at the society, said: “Historically we have only lent within our heartland on holiday lets but I am pleased to confirm we can now look to service customers anywhere within mainland UK.”

Different tax rules apply to holiday lets and mortgage interest can be offset against the rental income if the borrower operates under the “furnished holiday letting” rules because it is treated by HMRC as a trading business. Losses can be brought forward and offset against future profits.

Furness Building Society also recently upped its maximum age for mortgage applicants to 80 years, in line with a move in the industry to stamp out age-discrimination.