Cambridge & Counties launches into holiday let

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  • 05/11/2019
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Cambridge & Counties launches into holiday let
Cambridge & Counties Bank is launching into the holiday let mortgage market after research revealed interest in the sector is expected to rise .

 

It noted that holiday let properties offered favourable tax benefits that were not typically available on standard buy to let and that the sector was further encouraged by changing UK holiday trends.

The lender will allow up to 70 per cent loan to value for deals, based on an independent valuation rather than sale value, and rates will be on a case-by-case basis.

Minimum earned income is not required, however, resilience to loan repayments must be demonstrated.

Personal guarantees are requested from business owners or directors but are not always mandatory, and lending is conducted on an unregulated basis only.

 

Rise in staycations

Research from the lender of 1,026 people found that 72 per cent of UK nationals expected to see an increase in holidaymakers taking domestic, UK-based holidays next year.

A quarter forecast a significant rise, while only five per cent said they would be going on fewer UK holidays over the next year.

The top reason given for the increase in staycations was a drop in the value of the pound caused by Brexit making foreign holidays more expensive, cited by 67 per cent.

Other key reasons were a rise in the underlying costs of overseas travel and a rise in barriers to international travel such as stricter visa requirements or tougher border controls, both cited by half of respondents.

Cambridge & Counties Bank chief development officer Simon Lindley said the lender was seeing increasing demand for these types of loans “and expects this demand to increase significantly as the UK becomes an increasing attractive holiday location for UK and foreign holidaymakers.”

 

Prime locations

Cornwall topped the list of UK destinations that respondents thought would see the greatest rise in UK staycations over the next three years, with 51 per cent suggesting this was the prime area.

The Lake District and Devon, at 43 per cent and 41 per cent respectively were second and third.

Furthermore two thirds of UK holidaymakers expected demand to be greatest for coastal properties, followed by rural ones at 47 per cent and those in National Parks at 33 per cent.

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