The society says that the new mortgage is an expansion of their current holiday let offer, which already includes a 3 year discounted rate product and its flexible approach to lending, including the ability to consider background or personal income (Top Slicing).
The new product includes a pay rate fixed at 4.19% for the first 5 years, a £199 application fee, a £1,300 completion fee, a 3% early repayment charge in the first 5 years and a procuration fee of 0.40%.
Affordability for the mortgage will be assessed based on a proportion of high, mid and low season income and the interest coverage ratio (ICR) must be at least 125% of monthly mortgage payments at 5.5%.
Andy Alvarez, Head of Mortgage Sales, said: “We’re delighted to be adding a 5 year fixed rate to our holiday let offer to give more choice for those needing our flexible approach to lending. With interest rates so low at the moment, we believe that landlords in this sector will value the opportunity to have fixed outgoings for the next 5 years.
"There is an ever-increasing demand from brokers who are coming to us as a buy to let lender because of our diverse support, which not only includes holiday lets but also regulated family buy to lets, ex-pats and SPV limited companies. As well as our underwriting ability to support niche sectors, we’re keen to offer attractive products for those that operate in these areas.”
