‘Staycations’ have been a popular holiday option since pandemic restrictions were lifted and shows no sign of easing. It is a major reason for increases in holiday let financing.
As the threat of Covid-19 restrictions disappeared, other reasons for taking a holiday closer to home have become apparent.
With the ongoing cost-of-living crisis, many Brits are now choosing a ‘savecation’ and opting for a UK holiday instead of traveling abroad and the expense this brings.
As a result, the Harpenden team has seen increasing demand from brokers’ customers looking to fund the purchase of short-term holiday lets as more accommodation of this type has been needed.
Properties in typical holiday hot spots like Devon and Cornwall remain popular with investors, but we’re also seeing increased mortgage applications to fund city-based holiday lets and rentals in less typical, more rural destinations like the Home Counties.
Historic centres like St Albans, Hertford and Guildford, which are not classed as typical holiday areas, are attractive in their own right. With with their proximity to London, they have an added attraction as a staycation or savecation destination.
Harpenden Building Society allows holiday let financing in these non-traditional holiday destinations, unlike some other lenders, making it a significant new opportunity for brokers arranging mortgages in this growing niche.
It’s a combination of these factors which is contributing to the growth of short-term UK holiday rentals and the opportunity this creates for brokers as would-be owners look to invest.
Sourcing the right holiday let mortgage
Harpenden Building Society is a longstanding specialist lender in the UK holiday let space.
Our mortgage rates are competitive, and we offer additional attractive features to our customers. Owners can use the property for their own purposes for up to 90 days a year, for example, which is a popular added feature.
We also understand that people looking to invest in a UK holiday let may have a complex financial profile with multiple income streams. Our expertise in the field allows us to manage complex cases and provide specialist solutions that other lenders may not be able to service.
Our policies are underwritten manually by experts, which allows us to take a flexible approach. We consider a wide range of complex income sources, including trust income, pensions, maintenance, investment, as well as standard employed and self-employed income.
Harpenden Building Society Holiday Let mortgages – key features at a glance:
- 90 days personal usage allowance per annum
- Airbnb considered
- We lend in town and city centres as well as coastal areas
- We lend on properties above commercial units
- Minimum income of £30.000 required
- Top slicing
- Up to 3 properties on one title considered
- 75% LTV available on IO and 80% available on repayment
Holiday Home / Second Home
- We consider a range of incomes, including pension, trust, investment and maintenance as well as 100% of bonuses, overtime and commission (2 years proof required)
- We consider latest years income for self-employed applicants
- No maximum age
- 75% LTV available on IO and 80% available on repayment
Whether it’s lending for a holiday let or in another area of specialist lending, the Harpenden team is always pleased to speak with mortgage brokers about their current lending requirements.
Chelsea Pordage is business development manager at Harpenden Building Society
