"This is our first step into holiday let lending, so we will be listening closely to intermediary feedback and looking at how demand develops."
- Samantha Ward - Hanley Economic
Hanley Economic Building Society has announced the launch of its first holiday let mortgage range, initially consisting of two variable discount products, both available up to 80% loan-to-value (LTV).
The first is a two-year variable discount mortgage with an initial pay rate of 5.54%, representing a 2.20% discount from the Society’s standard variable rate (SVR), currently 7.74%.
A second variable discount mortgage is available for the term of the loan with an initial pay rate of 5.40%, a 2.34% discount from the Society’s current SVR.
These products are available for purchase and remortgage purposes on either a capital and interest or interest-only basis, subject to applicants meeting the Society’s interest-only criteria. They come with a minimum loan size of £30,000 and a maximum loan size of £600,000.
The range is available to expat applicants with foreign income allowed, first-time landlords are considered, and properties marketed through Airbnb are accepted. Key criteria also include up to 90 days of personal use each year and no geographical restrictions.
Each application will be assessed on an individual basis by Hanley’s in-house underwriting team, with no credit scoring. The products will be available through selected intermediary channels.
"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," Samantha Ward (pictured above), commercial director at Hanley Economic Building Society, said.
"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."
