Hodge has announced that it has reinstated its 5-year fixed rate products, added a new 2-year fixed rate product and reduced the rate on its current 2-year fixed rate product by 95 basis points. Rates have also been reduced across the Holiday Let retention range by up to 83 basis points.
Alongside this, the specialist lender has also made criteria changes.
As of November 28th, holiday let lending will be restricted to non-portfolio landlords, meaning that Hodge will only accept holiday let mortgage applications from property investors who have three or fewer mortgaged properties excluding their primary residence.
In light of recent tax changes in the Spring Budget, stress rates on these products are also changing:
Stress rates for the 5-year holiday let products will increase to a maximum of pay rate +2% or 5.5%. Stress rates for pound-for-pound remortgages will increase to the maximum pay rate of +2% or 5.5%.
There is no change to the 2-year stress rate and the Interest Coverage Ratio will be reduced across the board from 145% to 140%.
As of today, Thursday the 28th of November, the following products will be available at the following rates:
James Enos, national account manager for Hodge, said: “It’s been nearly five years to the day since we launched our first holiday let product at Hodge, and a lot has happened in the holiday market in that time.
“The reintroduction of our popular 2 and 5-year fixed products and the rate reduction on our 2-year product will give investors more options.”
James concluded: “Despite the difficulties the holiday let market has seen in recent years, it is still a popular investment option for many. Our products also allow investors to rent their holiday lets on Airbnb and stay at their properties for up to 90 days with no minimum income requirements, increasing their popularity.”
