Landlords looking to cash in on the trend for staycations and Airbnb short-stay trips can now fund their portfolios through a new holiday let mortgage
Landlords looking to cash in on the trend for staycations and Airbnb short-stay trips can now fund their portfolios through a new holiday let mortgage product.
Specialist lender Together has launched a mortgage product allowing landlords to purchase properties to rent out on a short-term basis.
Other firms such as Leeds and Bath building societies provide similar products but this is thought to be the first from a specialist lender.
Loans of up to £2m are available for purchase or remortgage, and terms range from four to 30 years, with a minimum five-year term on fixed-rate loans.
Landlords can get a loan-to-value of up to 65% but the rates are pretty high at 7.99% plus a 2% arrangement fee.
Marc Goldberg, commercial chief executive at Together, said a growing number of investors are turning to holiday lets as an alternative to traditional buy-to-let properties, due to attractive rental yields and websites such as Airbnb.
He says market demand for holiday lets is buoyed by record numbers of tourists visiting the UK – estimated to be 40m this year – and more Britons staying at home for their holidays post-Brexit.
Goldberg said: “Our aim is to support landlords and investors by providing innovative finance products that are tailored to their needs.
“Holiday lets can deliver high yields and there’s strong market demand, so we’re delighted to launch this new product which we believe will complement our existing offering in this sector.”