The product is a two-year variable discount with a pay rate of 3.05 per cent. The deal is available up to a maximum of 75 per cent loan to value (LTV), and comes with no completion or application fees.
It also has free valuation and early repayment charges are applicable.
Affordability is calculated by determining the average of high and low season projected or known rental yield. There is a standard buy-to-let interest cover ratio of 130 per cent at 5.5 per cent.
The holiday let is available for remortgages of properties in England and Wales that are used for short-term holiday lets ‒ including Airbnb ‒ and which are managed by a letting agent. It is not available to limited companies or portfolio landlords.
Ashley Pearson, business development manager at Loughborough BS, said: “This feels like the right time to offer an exclusive product for holiday let landlords to remortgage onto. No doubt they’ve had a busy summer and now’s the time of year when they may want to start thinking about some home improvements in readiness for next year’s rush so with this product, they can add extra borrowing if they wish.”
The holiday let market has seen enormous growth over the last year. Research last month from Moneyfacts found that the number of mortgage options for holiday lets have jumped from 74 in August 2020 to 186 today.