Precise Mortgages has announced a move into the holiday buy to let market as well as a change to its lending criteria for multi-units.
The specialist lender says that its latest offering is a response to research that shows that 9 per cent of landlords with more than 20 properties own a holiday let in the UK, and that 9 per cent own one abroad. Demand is apparently rising.
Open to experienced individual landlords and limited companies, holiday lets can be taken from Precise’s core buy to let range, with rates starting from 2.77% and on up to £500,000 to a maximum 70% LTV. Would-be borrowers may also opt for a bridging finance loan instead.
In late July, Mortgage Strategy found that lenders are increasingly allowing for short-term letting (such as AirBnB) in holiday lets. However, Precise Mortgages confirmed that it is not following suit.
Regarding the new lending criteria for multi-units, experienced borrowers investing in multi-units will be able to have up to six self-continued units within a single freehold and borrow up to £750,000 at 75 per cent LTV, and up to £1m at 70 per cent LTV.
Precise Mortgages managing director Alan Cleary says: “The UK is proving increasingly popular among both British and overseas tourists which is generating attractive rental returns for holiday lets. The new criteria across the buy to let mortgage and bridging finance ranges will help more customers secure the product they need.”