Keystone launches into holiday lets following rise in demand

  • 28/06/2021
  • 0
Keystone launches into holiday lets following rise in demand
Keystone Property Finance will begin lending on holiday lets after receiving an uptick in enquiries from brokers in the last six months.


Phil Riches, sales and marketing director at the lender said with travel restricted and people re-evaluating holiday plans due to the pandemic, the demand for holiday let mortgages had increased. 

He said: “Keystone has received numerous enquiries from brokers to lend on holiday lets over the last six months and as a specialist lender we wanted to support these brokers and their landlord clients by offering this additional venture.” 

Borrowers in the market looking to purchase or remortgage can now access any of the lender’s specialist products including its new green mortgage range. 

Keystone will lend up to 75 per cent loan to value (LTV) for those wanting loans of up to £750,000 and 70 per cent LTV for amounts up to £1m. 

Borrowers must earn a minimum of £40,000 a year and own one buy-to-let property which must be furnished. The rental agreement must also not exceed six months. 

The borrower’s property will be valued, and the rental coverage will be assessed on the same basis as a standard buy-to-let. 

Riches said: “Many holiday letting agents are reporting high occupancy rates during the summer of 2021 which has increased the number of enquiries and demand from professional landlords. These landlords are looking to add to their portfolios by purchasing holiday let properties.  

“There are a number of factors which are helping to drive this trend. Firstly, 100 per cent of holiday let rental income is can be offset against mortgage interest payable. Secondly, holiday let properties benefit from capital allowances on furniture, equipment and fixtures. Finally, when selling a holiday let the owner has the added benefit of being able to claim Capital Gains Tax relief across, Business Asset Rollover Relief, Entrepreneurs Relief and Relief for gifts of business assets.” 

He added: “We are confident that demand for home-based holidays is here to stay, and we are very excited now to be a part of this fast-growing part of the market.” 

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