Between 2008 and 2011 the use of UK holiday cottages doubled and continues to rise.
Kim Rebecchi, sales and marketing director at Leeds Building Society, said: "Holiday Let provides an appealing alternative to ‘buy-to-let', with attractive rental returns and a second home rolled in to one.
“We estimate that up to two thirds of existing holiday let landlords would refinance their current deal in order to reduce their costs and maximise their income, but choice is limited.
“I am delighted that we are able to support the UK holiday market by launching a dedicated product range and remove the uncertainty for new and existing holiday let landlords."
Leeds said that whilst holiday homes in coastal resorts and national parks may be expensive, careful selection can generate attractive financial returns with consistent rental demand throughout the year.
Rebecchi said: "According to the Holiday Lettings Insight Report, holiday rentals generated in excess of £540m income in 2011.
“However we know that funding for prospective holiday home landlords remains scarce with only a handful of regional lenders in the market.
"As a result Leeds Building Society has introduced a dedicated range of holiday let mortgages, priced alongside our ‘buy-to-let' range, to offer greater access to this type of lending and we believe this will create more opportunity and capacity.
“Furthermore, our team of mortgage underwriters understand this market and we've made our most popular buy-to-let fixed rate products available, so holiday let landlords can secure a competitive deal over a timeframe that best suits their needs."
