The Mansfield Building Society has launched a new holiday buy-to-let product specifically for borrowers seeking to purchase or remortgage a holiday let property.
The three-year discounted product is offered to 70% LTV at a current rate of 3.65% (2.10% below SVR).
Properties must have a minimum value of £150,000 and qualify as a ‘Furnished Let’ under HMRC rules.
The Mansfield also allows owners to reside in the holiday let for up to 60 days a year, providing an opportunity for those who wish to buy an investment property to use it as a holiday home too.
Affordability is calculated by taking into account the average of low, mid and high season takings, plus any surplus earned income and/or personal wealth.
The new holiday let product is part of the society’s wider specialist buy-to-let range which includes business, consumer, expat and ‘family’ buy-to-let products.
This product is not available for those seeking mortgages on holiday parks or complexes, B&Bs, AirBnB and properties subject to title, local or occupancy restrictions.
Paul Lewis, national development manager at The Mansfield, said: “We’ve seen a noticeable increase in interest for our ‘specialist’ buy-to-let products, especially the new holiday let. The added benefit of landlords being able to use the property themselves for up to 60 days per year seems to have added to the appeal.
As you’d expect from The Mansfield, we’re fully committed to our flexible underwriting approach. With holiday lets we’re able to assess affordability based on seasonal income whilst allowing borrowers to supplement shortfalls with surplus income and other accumulated wealth.
The increase in ‘stay-cations’ in the UK means that landlords can now consider redirecting their resources to alternative property investments that could help dilute or offset the effects of a poor Brexit. We would advise all investors interested in this area to ensure they do their homework, and then talk to their adviser to see how lenders, like The Mansfield, can help them secure the property they want.”