The three-year discounted variable rate is available at 3.49% up to 70% LTV, with £199 application fee and £1,800 completion fee which can be added to the loan.
Properties used for holiday lets must qualify as a furnished holiday let under the HM Revenue and Customs definition and have a minimum valuation of £150,000.
The Mansfield will allow holiday let landlords to occupy the property themselves for up to 60 days per year, and will also consider earned income or other personal wealth to support rental income when assessing affordability.
Like a number of other lenders in the market, bed and breakfast accommodation, AirBnBs and holiday complexes are not accepted.
Favourable tax treatment
Commercial development executive Richard Crisp said the lender was pleased to be making the leap into the sector adding to its expat, business, consumer and regulated family buy-to-let mortgages.
“We see a strong future for holiday lets in the UK with the implications of Brexit likely to reduce appetite for overseas investment,” he said.
“However, Brexit fallout aside, let’s not forget the favourable tax treatment furnished holiday lets continue to receive compared to other forms of residential property letting under HM Revenue & Customs rules. We believe holiday lets provide a credible opportunity for landlords to extend and strengthen their investment portfolios but appropriate advice should be considered a prerequisite.
“Feedback from brokers suggested that we needed to make our products accessible and flexible, so we are pleased to confirm that our holiday let product includes top slicing and capital raising, enabling more investors to unlock more value from their investment portfolios,” he added.