Buy to let lender Keystone says demand from landlords making the switch to holiday lets have driven it to expand its product range.
Borrowers looking to purchase or remortgage a holiday let within England and Wales can choose from products with two-year fixes starting at 3.34 per cent and five-year fixes from 3.49 per cent.
It also means borrowers have access to the green mortgage range, which offers exclusive rates for properties five years and older that have an EPC rating of C or above. The green specialist range starts from 3.24 per cent.
The firm will lend up to 75 per cent LTV on holiday lets for those wanting to borrow up to £750,000 and 70 per cent LTV for those wanting to borrow up to £1m.
To qualify, borrowers must earn a minimum of £40,000 a year, must own one buy to let and their property must be furnished. The rental agreement must not exceed six months.
The borrower’s property will be valued, and the rental coverage will be assessed on the same basis as a standard buy to let.
“We have launched our holiday let range following feedback from brokers and we are currently one of the few lenders to offer these types of loans” says the firm.
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I have been able to let holiday homes on normal domestic mortgages at normal interest rates for the past thirty years - just let the mortgage and insurance companies know it was being let out on holiday lets.
Not sure why anyone needs to pay inflated rates for this?
Not all mortgage companies are flexible when it comes to change of use... They want the extra percentage in my experience. I can't understand why holiday let rates should be higher than buy to let. Just a money spinner.
I bought them as holiday homes originally and got standard domestic mortgages at normal rates.
I think the key point is to show the mortgage can be paid from other earnings and to keep the LTV as low as possible.
I don't currently pay over 2% on any mortgage whether BTL, holiday homes or own home.
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