"Combined with the recently announced stamp duty holiday, we expect to see increased interest in the holiday let market from investors."
A three-year fixed rate is available at 3.49% up to 75% LTV and a five-year fix starts at 3.74%. Both products have a £99 application fee and a £899 arrangement fee.
The products are aimed at supporting increased demand from new and existing property investors looking to capitalise on growth in the UK holiday-let market.
Research from Teachers Building Society found that three in five (59%) Brits are planning a UK staycation this year. Comparing holiday plans pre and post pandemic, the research revealed that an additional 35% of Brits were now considering a UK based holiday as a direct result of Covid-19.
When it comes to accommodation, self-catering holiday lets were found to be a popular choice, with three in ten (29%) saying they’d select this option, second only to hotels (37%).
When it comes to destination, it seems for many Brits they’d prefer to cross the Tamar than an air bridge, with Cornwall topping the list of most desirable places to visit. Scotland, Devon, Wales and the Lake District completed the top five.
Ralph Punter, business development manager at Teachers for Intermediaries, said: “As our own research has shown, consumer demand for UK based holidays has increased as a direct result of the pandemic, a trend we expect to continue into next year too.
“Combined with the recently announced stamp duty holiday, we expect to see increased interest in the holiday let market from investors.
“Our new mortgage products will support those looking to purchase holiday-let homes for short term rental purposes.”
