Ipswich Building Society has launched a two-year fixed rate at 80 per cent loan to value (LTV)
The deal is priced at 4.10 per cent until 31 March 2023, then reverts to a standard variable rate of 5.24 per cent. The minimum loan is £75,000 and the maximum loan permitted is £500,000. An application fee of £199 and a completion fee of £950 apply.
This product is available with 60 days’ personal use and is calculated using an average of low, medium, and high season rental income.
Richard Norrington, chief executive at Ipswich Building Society, said: “The pandemic led to an increased number of UK holidays in 2020, and with popular holiday destinations in the UK already booked up for this summer, it looks set to continue in 2021 and beyond especially with overseas travel rules currently unknown.
“While appetite for holiday let mortgages is growing, the number of products has fluctuated throughout the pandemic.
“By increasing our offering here, we hope to provide more options for those looking to purchase or remortgage a holiday let, especially for those looking to do so with a smaller deposit.”
Mansfield Building Society
Mansfield Building Society has launched a five-year fixed rate holiday let mortgage up to 65 per cent LTV. The deal is priced at 4.19 per cent and comes with a £199 application fee and a £1,300 completion fee.
Affordability for the mortgage will be assessed based on a proportion of high, mid and low season income and the interest coverage ratio must be at least 125 per cent of monthly mortgage payments at 5.5 per cent.
Head of mortgage sales Andy Alvarez said: “With interest rates so low at the moment we believe landlords in this sector will value the opportunity to have fixed outgoings for the next five years.”