"We saw a gap in the holiday let mortgage market for a customer friendly product that allows owners to stay at the property for longer period"
Hodge has launched a new holiday let mortgage which allows the property to be let via Airbnb as well as offering up to 90 days occupancy per year by the owners.
The mortgage allows customers to borrow up to £1.5m and has a maximum lending age of 95.
In addition, early repayment fees are waived if the landlord sells the property and pays off the mortgage in full.
Recent research from Hodge found that more than a third of Brits would like to own a holiday home but 74% were unaware of the tax advantages which allow owners to deduct mortgage costs and expenses from profits before calculating income tax.
Emma Graham, business development director of Hodge, said: “We saw a gap in the holiday let mortgage market for a customer friendly product that allows owners to stay at the property for longer period, as well as the ability to use letting sites such as Airbnb. So, we set about developing a product that will allow the maximum flexibility for customers looking to buy their little place in the British sun.
“We conducted some research into the holiday plans of 2,000 Brits and were surprised to discover that a staggering 74% of those quizzed did not know the tax advantages of owning a holiday let.
“It seems the holiday let market is also set to grow, as the research also found that more than a third of Brits (36%) would like to own their own holiday home, with nearly half (46%) aged between 25 and 34 would like their little staycation haven.
“Staycationing isn’t just a phase – our research found that 48% of people went on a staycation in 2019, and of those planning to stay-cate in 2020, 22% said that concerns about the environment are leading them to stay in the UK for their holidays and a further 25% cited uncertainty around Brexit as a reason for not going abroad next year.
“We wanted to help our customers make the most of this trend and buy a property they could rent out to people holidaying in the UK. We have seen an increase in enquiries from those looking to buy a holiday let so we’ve developed a product that will allow the maximum flexibility when trying to do this.”