Yorkshire Building Society launches mortgage for holiday homes
Yorkshire Building Society (YBS) Commercial Mortgages has launched a new buy-to-let mortgage.
The deal is targeted specifically at landlords buying holiday let properties in prime UK tourist locations.
Holiday homes have been a significant and growing sector of the UK economy, said YBS, with British residents taking more than 99 million overnight trips in England last year, spending £19.4bn.
It said that queries from investors wanting to buy holiday lets are up 25 per cent in some areas since the Stamp Duty holiday was announced and, with foreign trips under restrictions, the outlook for the domestic tourism sector are optimistic.
The holiday home mortgage
The mutual lender has launched its limited company buy-to-let mortgage to focus on holiday homes on the South Coast, South West, Wales and the Lake District.
The new holiday home mortgage is a five-year fixed rate at 3.85% for loans up to 75% loan-to-value (LTV), with a maximum loan amount of £1m.
Allan Griffiths, YBS Commercial Mortgages regional director, said: “We know the UK tourism industry has been badly affected by the coronavirus pandemic and subsequent lockdown, but as restrictions ease, staycations are soaring in popularity.
“We hope that the launch of our new targeted product for this sector specific need will help to support the tourist industry in these areas.”