Hodge has introduced a new mortgage aimed at those wanting to acquire a holiday let property in the UK.
The mortgage, which allows customers to borrow up to £1.5m and has a maximum lending age of 95, permits the property to be let via websites such as Airbnb, while also offering up to 90 days occupancy per year by the owners.
In addition, early repayment fees are waived if the landlord sells the property and pays off the mortgage in full.
Emma Graham, business development director of Hodge, commented: “We saw a gap in the holiday let mortgage market for a customer-friendly product that allows owners to stay at the property for a longer period, as well as the ability to use letting sites such as Airbnb.
“So, we set about developing a product that will allow the maximum flexibility for customers looking to buy their little place in the British sun.
“We conducted some research into the holiday plans of 2,000 Brits and were surprised to discover that a staggering 74% of those quizzed did not know the tax advantages of owning a holiday let.”
The holiday let market appears to offer room for growth, with the research by Hodge revealing that more than a third of Brits - 36% - would like to own their own holiday home, while almost half - 46% - aged between 25 and 34 would like their little staycation haven.
Graham continued: “Staycationing isn’t just a phase – our research found that 48% of people went on a staycation in 2019, and of those planning to stay-cate in 2020, 22% said that concerns about the environment are leading them to stay in the UK for their holidays and a further 25% cited uncertainty around Brexit as a reason for not going abroad next year.
“We wanted to help our customers make the most of this trend and buy a property they could rent out to people holidaying in the UK.
“We have seen an increase in enquiries from those looking to buy a holiday let so we’ve developed a product that will allow the maximum flexibility when trying to do this.”
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