InterBay launches holiday let products

The two and five-year fixed rate mortgages are available for individual and limited company landlords at up to 70 per cent loan to value (LTV).

The two-year deal has an interest rate of 3.84 per cent and the five-year version is at 4.29 per cent, loans are available between £50,000 and £1m, and an interest-only option is also available.

A £145 application fee applies along with a 1.5 per cent completion fee, and both deals have early repayment charges (ERCs) of four per cent in the first year and three per cent in all remaining years.

No occupancy restrictions apply, although applicants must be an existing landlord and a minimum income of £30,000 is required per application.

The minimum interest coverage ratio (ICR) and stress rate requirements are 140 per cent using gross rent, with rent calculations based on a letting period of 30 weeks a year at an average of the low, mid and high season rates.

Adrian Moloney, group sales director of OneSavings Bank, noted that with more people looking at staying in the UK as a result of the pandemic, there had been a big increase in demand for holiday let accommodation.

“To help experienced landlords meet this demand, our new proposition could be ideal for those who are operating through a limited company structure, have complex set-ups or are thinking of purchasing a property that doesn’t fit the sometimes narrow criteria found on the high street,” he said.