Together says more professional landlords are looking to rent out their properties on a short-term basis. It believes short-term rental platforms like Airbnb are making it easier to find tenants and generate attractive yields.
Loans of up to £2m are available for purchase or remortgage. Terms range from four to 30 years, with a minimum five-year term on fixed-rate loans.
The holiday let loan is also available on a second charge basis, for landlords looking to raise additional finance on their rental property.
Together will consider lending to borrowers using non-standard properties as security, and to a broad range of customers, including limited companies, sole traders, self-employed, expats and those who may have some adverse credit history.
Marc Goldberg (pictured), commercial CEO at Together, said: “Our aim is to support landlords and investors by providing innovative finance products that are tailored to their needs.
“Holiday lets can deliver high yields and there’s strong market demand, so we’re delighted to launch this new product which we believe will complement our existing offering in this sector.”
He said market demand for holiday lets was buoyed by record numbers of tourists visiting the UK. This view is supported by figures from Visit Britain. The national tourism agency said in 2016 there were 37.6 million inbound visits to the UK. Its latest forecast for 2017 is for 39.7 million visits.