Hanley launches into holiday let market – Mortgage Strategy

Hanley Economic Building Society has launched its first range of holiday let mortgages.

It is initially offering two discounted variable rate products, both available up to 80% loan-to-value (LTV) for purchase and remortgage.

The first is a two-year discount deal with an initial pay rate of 5.54%, which is a discount of 2.2% from Hanley’s standard variable rate (SVR), currently 7.74%.

The second is a discount rate for the term of the loan, with an initial pay rate of 5.4%, which is a 2.34% discount from the current SVR.

Both products are available on a capital and interest or interest-only basis and for loans between £30,000 and £600,000.

The new holiday let range is open to expats, including those with foreign income, and first-time landlords.

There are no geographical restrictions, properties marketed through Airbnb are accepted and borrowers can use the property themselves for up to 90 days a year.

Applications will be individually assessed by Hanley’s in-house underwriting team without credit scoring and the products will be available through selected broker channels.

Commercial director Samantha Ward says: “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.”