Number of holiday let mortgages on offer doubles in a year
Mortgage options for borrowers looking at holiday lets have more than doubled since August 2020, said Moneyfacts.
The financial information provider said there are now 186 options available compared to 74 a year ago.
More lenders have entered the market, with 25 different brands compared to just 14 in August 2020, the majority of which are currently building societies.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “It’s positive to see a rise in holiday let product choice for landlords over the past few months, but the market is still relatively niche as there are less than 200 deals available. As the demand for staycations remains evident, it would not be too surprising to see more growth in this market in the months to come.
“The mix of uncertainties this year surrounding international travel has caused demand for holiday lets and, according to Hamptons International, there were 1,404 new holiday let incorporations in England, Scotland and Wales between January and the end of June 2021. They recorded this as the highest number since their records began in 2007, an increase of 83% compared with the number of holiday let companies set up in the whole of 2020 and 119% more than in 2019.
“Whether the appetite for staycations falls into 2022 is unknown but for the moment it’s evident landlords are taking advantage of the opportunity to earn an income through holiday lets.”