Hanley Economic Building Society has expanded its specialist lending proposition through the launch of its first holiday let mortgage range.
The new range initially consists of two variable discount products, both available up to 80% loan-to-value (LTV).
The first is a two-year variable discount mortgage with an initial pay rate of 5.54%, representing a 2.20% discount from the Society’s standard variable rate (SVR), currently 7.74%.
A second variable discount mortgage is available for the term of the loan with an initial pay rate of 5.40%, a 2.34% discount from the Society’s current SVR.
These products are available for purchase and remortgage purposes on either a capital and interest or interest-only basis, subject to applicants meeting the Society’s interest-only criteria. They come with a minimum loan size of £30,000 and a maximum loan size of £600,000.
The range also includes criteria designed to accommodate a broad mix of borrowers and property types.
Key criteria include:
- Available to expat applicants with foreign income allowed
- Up to 90 days of personal use each year
- First-time landlords considered
- No geographical restrictions
- Properties marketed through Airbnb accepted
Each application will be assessed on an individual basis by Hanley’s in-house underwriting team, with no credit scoring. The products will be available through selected intermediary channels.
Samantha Ward, Commercial Director at Hanley Economic Building Society, commented:
“The holiday let market has changed considerably as the ways in which people own, use and generate income from these properties have become more varied.
“For us, that creates an opportunity to bring the type of individual underwriting approach we already apply across our proposition. It also reflects what we are hearing from brokers, who increasingly need lenders to understand the detail behind a case rather than make decisions based on a narrow set of standard assumptions.
“This is our first step into holiday let lending, so we will be listening closely to intermediary feedback and looking at how demand develops. That dialogue will be important in helping us understand where we can add most value and how the proposition should develop over time.”
