Specialist lender Together has launched a new holiday let mortgage product available for landlords and buy to let property investors wishing to rent out their properties on a short-term basis.
The growing popularity of online holiday let platforms such as Airbnb has pushed short-term lettings to the forefront of many investor’s ideas. An increasing number of landlords are looking towards holiday letting as an alternative to traditional buy to let leases. This is likely due to the potential for attractive rental yields and the absence of potentially lengthy void periods.
Together is offering loans of up to £2 million for purchase or remortgage purposes. The loan terms range from four to 30 years, although there is a minimum five-year term for fixed rate deals.
The holiday let loan will also be available on a second charge basis, for investors looking to raise additional finance on their existing rental property. Borrowers using non-standard properties as security will also be able to access the deal. Together are targeting a range of customers, ranging from limited companies to sole traders and self employed investors. Those with an adverse credit history will also be able to purchase the products.
Market demand in the holiday lettings sector has been swiftly rising in recent times. Record numbers of tourists are visiting the UK, with figures estimated at 40 million for this year alone. Furthermore, following the Brexit vote to leave the EU, many British holidaymakers are opting to remain home for their holidays rather than travel abroad as they have before.
Commercial CEO at Together, Marc Goldberg, commented on the new products offered by the lender: ‘Our aim is to support landlords and investors by providing innovative finance products that are tailored to their needs. Holiday lets can deliver high yields and there’s strong market demand.’