Leeds launches dedicated holiday let range

The two-year fixed rate comes in at 3.40 per cent, the three-year 3.99 per cent and the five year fix at 4.29 per cent, all at 70 per cent LTV.

It comes with no higher lending charge, a £199 booking fee, an £800 completion fee and 10 per cent capital repayments are allowed each year without penalty.

Criteria includes minimum income of £40,000, 130 per cent minimum rental income, a maximum value of £250,000 and a maximum portfolio size of three holiday lets.

Leeds says that between 2008 and 2011, the use of UK Holiday Cottages doubled and it continues to rise. It cites research from Travelodge which found that two thirds of Britons will take a summer break in the UK this year, which is a increase of 41 per cent compared to 2012.

And research from the Holiday Lettings Insight Report also shows that holiday rentals generated in excess of £540m income in 2011.

The mutual’s sales and marketing director Kim Rebecchi says that it estimates 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.

She says: ”As a result, Leeds 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.”