Legal & General Mortgage Club has partnered with Harpenden Building Society to offer an exclusive vacation rental product.
The two-year discounted mortgage has an initial rate of 2.59% with an application fee of £ 100, a completion fee of £ 800, which can be added to the loan, and a tiered appraisal fee .
Up to 80% value loan is offered on a repayment basis, or 75% LTV on an interest-only transaction. There are no senior age restrictions and up to four borrowers per application are accepted.
A 2% prepayment charge applies for the two-year period.
The companies say the mortgage can be used by borrowers who purchase a property as a vacation rental that would previously have been labeled as a consumer rental, “making the loan criteria for the product much more attractive to customers. “.
Harpenden says it takes “a holistic view of an applicant’s financial profile,” to ensure clients have the funds to pay the mortgage and operating costs for up to three months.
The mutual adds: “This crucially protects the client’s ability to repay the loan, protecting it against scenarios such as the unexpected absence of visitors, for example.”
In addition, the new product has no restrictions on the location of the property in England and Wales, with properties adjacent to or above commercial buildings also being accepted. Deposits offered by a family member are also accepted and a personal use allowance of up to 90 days has been introduced.
Legal & General Mortgage Club Lender Relations Manager Danny Belton said: “The demand for vacation rental investments is always on the rise and we are proud to partner with the Harpenden Building Society to respond to that growing market appetite with our latest discounted exclusive.
“With a potential rate hike on the horizon, this exclusive offering gives advisors access to another competitively priced product, expanding the choice they can offer borrowers looking for vacation rental solutions. “
Emily Smith, Head of Distribution and Marketing for Harpenden Building Society, adds: “As the demand for vacation rentals has increased over the past 18 months, this product offers customers a premium rate and includes the added benefit of a personal use for 90 days.
“In addition, at Harpenden, our mortgages continue to be underwritten individually, allowing us to capture a client’s specific and individual needs, no matter how complex.