Holiday Let fixed for 2 years

A two year fixed rate Holiday Let mortgage to purchase or remortgage an investment property to rent out as a holiday let/Airbnb.

The Society is one of a handful of Lenders who offer specially designed mortgages for properties that are used as holiday homes. The property must be in England, Wales or mainland Scotland and be of standard construction and have a minimum value of £100,000. The maximum loan-to-value (LTV) is 70%, reduced to 65% for flats or apartments.

We do not lend on properties on sites but can consider Airbnb arrangements if the whole property is rented rather than a single room. Also, you can use the property for up to 60 days per year.

Properties with restrictive usage or holiday let covenants are acceptable. Properties with such covenants or with more than four bedrooms will also have a maximum 65% LTV restriction.

The mortgage listed below moves on to our Standard Variable Rate, currently 4.9% (variable), after the initial rate period. There may be a limit on how low your interest rate can fall. This is called an ‘interest rate floor’. The interest rate floor applicable to your loan will be specified in your loan documentation.

Initial rate i	Overall cost for comparison i	Max % LTV i	Payment type i
3.99%	5.0% APRC	70%	Interest only and repayment options available
See example
Representative example: A mortgage of £215,000 taken out for a period of 20 years on an interest only basis. Monthly instalments: £714.88 per month for 23 months, followed by £880.95 per month for 216 months. Total amount payable: £424,034.94 Total amount of credit: £215,000 The total amount payable includes administration fee £125, valuation fee £395, product fee £1,612.50, completion fee £75 and closing fee £100. The overall cost for comparison is 5.0% representative APRC. This example relates to the Holiday Let 3.99% fixed for two years product, is based on a typical mortgage and assumes that fees are not added to the mortgage. Please ask for a personalised illustration for your own particular requirements.

Key features
- Availability – Purchase & Remortgage up to 70% Loan To Value (LTV). Minimum deposit of 30% required.
- Flexibility – Overpayments up to 20% of the capital balance as at 1st January are allowed in each calendar year without penalty.
- Portable.
Early repayment

If you repay your mortgage early, or make an overpayment, you may have to pay an early repayment charge.

For full repayment, you will pay 3% of the outstanding balance in year 1, 2% in year 2, plus a Closing Administration Fee (currently £100).

For overpayments, you will pay 3% on any amount exceeding your 20% limit in years 1 & 2, and 2% in year 3.
Product fees
- Administration fee £125.
- Valuation fee (scale).
- Product fee 0.75% of advance (minimum £999).
- Completion fee £75.

Lending criteria

Lending Criteria and Information

Loan:	Size: Minimum £50,000, Maximum £300,000 at 70% and £300,000 to £500,000.00 at 65% Term: Minimum 5 years, Maximum 40 years. Repayment Type: Capital Repayment, Interest Only.
Property:	Minimum value is £100,000. The property must be in England, Wales or mainland Scotland and be of standard construction. No properties on sites. Flats or apartments up to 65% LTV at £300,000 or 60% at £500,000. Properties with restrictive usage or holiday let covenants are acceptable providing that they are used in compliance with that restriction. Properties with such convenants or with more than four bedrooms will have a maximum LTV of 70% LTV at £300,000 or 60% at £500,000. Must be in England, Wales or mainland Scotland.
Applicant:	Age: Minimum 25, no maximum, subject to income in retirement.
Income:	Household income must be at least £30,000.
Rental:	Based on 75% annual occupancy. Rent to cover 130% of interest at pay rate.
Underwriting:	We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk. We will consider holiday lets throughout England and Wales subject to acceptance by the Society’s valuer. Holiday lets with restrictive usage covenants are acceptable providing that they are used in compliance with that restriction.
Other information	You must be able to service your existing commitments from income without recourse to the rent from this property. If you have a Buy to Let or Holiday Let portfolio, you will need to demonstrate that this is self-funding.

Proc fee

We will pay a gross procuration fee of 0.35% on all introduced business. The fee is usually paid within five working days following completion. Procuration Fees may vary for our recognised Clubs & Packagers.
Useful stuff
Tariff of Mortgage Fees

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Mortgage Conditions

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