The move is in response to increasing demand for staycations
The Nottingham Building Society has added more options into its mortgage offering with the introduction of holiday lets lending.
The mutual has responded to the rising demand for staycations by unveiling a range of products designed to help those looking to invest in a holiday rental.
The building society’s criteria includes lending on up to two holiday lets in England or Wales, with no minimum personal income requirement.
It will also take into consideration up to 32 weeks’ rental yield and allow the owner to utilise the holiday let for personal use for up to 60 days each year.
The Nottingham’s new products are a two-year fixed rate with £999 fee (£0 upfront) at 3.55%; a five-year fixed rate with a £999 fee (£0 upfront) at 3.82%; and a two-year discount with no ERCs and a £999 fee (£0 upfront) at 3.25%. All of these are available up to 75% LTV.
Read more: Holiday lettings UK – the impact of renewed freedom.
Christie Cook (pictured), head of mortgage product at the Nottingham Building Society, said the challenges and restrictions brought about by the pandemic led many to rethink certain aspects of their lives including how, and where, they take their holidays – with a well-publicised surge in the number of staycations.
“That, in turn, has created a potential investment and income opportunity for those looking to purchase a holiday rental, so we are excited to be lending in this space,” Cook noted. “As we head into summer, hopefully, our competitively priced range of holiday let products, aligned with our lending criteria, will bring some sunshine to brokers and their customers.”
