According to the lender, the new product is priced at 4.10% until 31 March 2023, before reverting to SVR (currently 5.24%). It is available at 80% LTV with a minimum loan of £75,000, a maximum loan of £500,000, an application fee of £199 and a completion fee of £950.
This product is available with 60 days’ personal use and is calculated using an average of low, medium, and high season rental income.
Richard Norrington, CEO at Ipswich Building Society, said: “The pandemic led to an increased number of staycations in 2020, and with popular holiday destinations in the UK already booked up for this summer, it looks set to continue in 2021 and beyond, especially with overseas travel rules currently unknown.
“It’s perhaps no surprise then that there is a demand in the buy-to-let market for holiday lets. However, whilst appetite for these mortgages is growing, the number of holiday let products has fluctuated throughout the pandemic.
“Whilst we were already currently in the holiday let market with discounted rates, we were keen to respond to the desire for fixed-rate deals. By increasing our offering here, we hope to provide more options for those looking to purchase, or remortgage a holiday let, especially for those looking to do so with a smaller deposit.”
