"The decision to launch a holiday let specific product followed extensive analysis of whether there was appetite for this type of mortgage"
The variable mortgage product is available for purchase, remortgage or borrowers looking to borrow additional funds where the property is let on a holiday basis for some or all of the year.
The three-year discounted rate of 3.45% is available at 75% LTV on loans up to £300,000 and 60% LTV up to £500,000.
The Society will consider potential holiday let income when assessing affordability and also take into account top-slicing and capital raising to allow investors to see more value from their rental portfolios.
The holiday let property must be located in a suitable holiday location in England - outside Central London - or Wales.
Roger Knight, lending manager at Newbury Building Society, said: “We are delighted to further strengthen our buy-to-let mortgage product offering. The decision to launch a holiday let specific product followed extensive analysis of whether there was appetite for this type of mortgage within our current borrower base as well as listening to feedback from intermediaries who have informed us demand is high.
"As a mutual building society, we want to ensure we give brokers the right tools to help provide their clients with the right products; we believe our holiday let does just that.”
