According to the lender, the new variable mortgage product has been designed to specifically target customers who are either purchasing, remortgaging or looking to borrow additional funds where the property is let on a holiday basis for some or all of the year.
The Society’s newest buy-to-let addition, will consider the potential holiday let income when assessing affordability and also take into account top-slicing and capital raising to allow investors to see more value from their rental portfolios.
Roger Knight, Lending Manager at Newbury Building Society said: “We are delighted to further strengthen our buy-to-let mortgage product offering. The decision to launch a holiday let specific product followed extensive analysis of whether there was appetite for this type of mortgage within our current borrower base as well as listening to feedback from intermediaries who have informed us demand is high. As a mutual building society, we want to ensure we give brokers the right tools to help provide their clients with the right products; we believe our holiday let does just that.”
The holiday let property must be located in a suitable holiday location in England (not central London) or Wales to be eligible.