Holiday let solutions

If, like us, you’re seeing an increasing number of holiday let cases, as emphasis on staycations builds in the wake of COVID, we’ve got a simple solution that’s exclusively available via intermediaries, with a competitive rate to help you and your clients – especially those with more complex circumstances.

To find out more please talk to your nearest Specialist Lending Manager.

As an experienced holiday let lender, why not allow us to take the hassle out of sifting through different pricing and requirements, with a straightforward holiday let range and fresh approach for your cases from £200k up to £3m. We’re offering an increased 0.45% procuration fee and taking simple steps to assess affordability:

• Variable rates are 3.49% for simple applications and 4.24% for complex cases. Fixed rates are also available
• 145% interest cover from gross rent required for unregulated cases
• Minimum income of £25k for simple holiday lets and £35k for complex holiday lets (separate from holiday let income)
• Minimum property value for complex holiday lets is £350k
• Up to 75% LTV, some property types and loan sizes may be restricted to a lower LTV

We also take a more flexible approach to holiday let scenarios, including:

• We consider cases where your client needs a maximum three months to refurb the property
• Furnished holiday lets and AirBnB
• Applications from first-time buyers and first-time landlords, no prior letting experience requirement

What are complex cases?

These are some examples that make a case complex:

• No main residence
• Loans over £800k
• Any planning restrictions limiting use of property to holiday let or similar
• Any commercial-type activity on site
• Unusual properties types, including annexes, large acreage and listed buildings, more than one let unit or more than one title to charge
• Cases outside of standard affordability criteria

Why choose MHBS?

If you’ve got a holiday let case, your nearest Specialist Lending Manager can provide a quick guide around how we can help. Cases are reviewed at our daily Credit Committee so you’ll get a swift response that you can rely on, unless there is a fundamental change. Plus you can benefit from the following:
• 0.45% procuration fee
• AVMs used where possible
• Each case has a dedicated underwriter, who you will have access to
• No upper age limit
• Fixed and variable rates available, more detail shown below

Products and criteria

Complex Initial rate Follow on rate Product fee Application fee ERC
5 year discounted rate 4.24% 5.49% 0.75% £95 3% for three years
2 year fixed rate 4.39% 5.49% 0.75% £295 3% for two years
5 year fixed rate 4.89% 5.49% 0.75% £295 3% for four years, then 1% in the fifth year
Simple Initial rate Follow on rate Product fee Application fee ERC
5 year discounted rate 3.49% 5.49% £995 £95 3% for three years
2 year fixed rate 3.64% 5.49% £995 £295 3% for two years
5 year fixed rate 4.14% 5.49% £995 £295 3% for four years, then 1% in the fifth year

We treat each case individually. To discuss your clients’ scenario in more detail please contact your nearest Specialist Lending Manager.

Other fees to be paid by your client:

  • Valuation fee
  • Legal fees
  • Quantity Surveyor fee (for some development cases)
  • Funds transfer fee

Fees are outlined in the Society’s Tariff of Mortgage Charges.

 

Applicant criteria
Minimum age 18
Maximum age No age restrictions for let applicants
Maximum number of applicants Four
Residential status UK loans considered
Foreign nationals Foreign nationals considered
Credit impairment We are unable to accept credit impaired applicants

 

Loan criteria
Amount £200k – £3m
Maximum LTV 75%

 

Security criteria
Location In England or Wales
Property type We are happy to consider unusual properties, including:

  • Listed buildings
  • Large acreage
  • Properties with an annexe
  • Multi-units

Get in touch

To find out more or discuss a case talk to your nearest Specialist Lending Manager.

Ready to talk?

Experience our first-class, personal service with a dedicated Specialist Lending Manager and named underwriter for your cases.