The Mortgage Lender launches holiday and short-term lets product

The five-year fixed product has a rate of 4.16 per cent and the two-year fixed has a rate of 3.67 per cent. Both are available at 75 per cent loan to value (LTV).

The products are open to individual landlords and limited companies with a minimum of one buy-to-let (BTL) property in their current portfolio for 12 months. It is eligible for purchase and remortgage and has a maximum loan value of £1m.

There are no minimum income restrictions, with the lender explaining that lending is based on a “sustainable” assured shorthold tenancy figure. Affordability is available from 125 per cent of payrate for a five-year fixed rate.

The Mortgage Lender sales and product director, Steve Griffiths, (pictured) said: “The holiday and short-term rental market in the UK has been particularly buoyant for a number of years, but especially so since the pandemic cancelled a lot of people’s plans for holidays abroad.

“For established landlords and investors this segment of the market provides an attractive route to diversifying their property portfolios.”

Holiday lets have grown in popularity over the past year as tax benefits, UK holidays and lockdown savings have persuaded would-be investors into the sector and growth is set to continue.