Market Harborough BS and Cambridge BS launch holiday let mortgages

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  • 15/04/2021
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Market Harborough BS and Cambridge BS launch holiday let mortgages
Cambridge Building Society has re-entered the holiday let market with a pair of products for those renting out holiday homes.

 

This includes a two-year discounted mortgage at 75 per cent loan to value (LTV) with a rate of 3.39 per cent, down from its current standard variable rate (SVR) of 4.89 per cent. It has early repayment charges (ERCs) of one per cent. 

The five-year fixed is priced at four per cent, also at 75 per cent LTV. ERCs start at five per cent and decrease by one basis point each year until it reaches one per cent on the fifth year of the term. 

Borrowers are allowed to stay in the properties for up to 90 days a year and Airbnb or similar properties are permitted. New and existing holiday lets can be accepted. 

Portfolios of up to five are allowed with no limits on previous portfolio size. 

Dan Barker, product manager at The Cambridge, said: “We’ve seen how people have re-evaluated their finances over the last year, regardless of this, the appetite to have a place to holiday remains.  

We understand from our intermediary partners that requests for holiday let mortgages have increased significantly, and we’ve built great products and flexible criteria to support their holiday homeowner clients with their investments. 

 

Market Harborough BS launches holiday let products 

Market Harborough Building Society (MHBS) has launched products for simple and complex holiday lets.  

Products are available up to 75 per cent LTV for loan sizes between £200,000 and £3m. 

Simple applications have variable rates of 3.49 per cent while complex cases have a variable rate of 4.24 per cent. Fixed rates are available on request. 

Expats, Airbnb rentals and non-standard properties such as multi-units will be considered. 

Applications from first-time buyers and landlords will also be eligible as well as cases where applicants need up to three months to refurbish the property. 

Tina Long, new business lead at MHBS, said: “We’re excited to launch this range which delivers straightforward pricing and processing to holiday let cases during this busy period for intermediaries. 

We’re really proud that our personal, tailored approach means we can consider intermediaries’ more challenging cases, such as those outside of standard affordability and those where no main residence is involved.”

 

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