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
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
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
| 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:
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:
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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.