Loughborough Building Society has launched a remortgage-only product for holiday let borrowers, either like-for-like or with additional borrowing.
The product is a 75% loan-to-value (LTV) 2-year variable discount with a current pay rate of 3.05%.
It also includes a free valuation, no completion or application fees and early repayment charges (ERCs) apply during the product term.
It is available only for properties in England and Wales that are used for short term holiday letting, including Air BnB. It is not available for limited companies or portfolio landlords.
Affordability will be calculated by using the annual rental yield with the standard BTL ICR of 130% at 5.5% and the owners will be able to use the property for their own use for 60 days each year.
Ashley Pearson, BDM at The Loughborough, 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.”