Borrowers must earn a minimum of £40,000 a year, must own one BTL and their holiday let must be furnished in order to qualify
Keystone has become the latest lender to enter the holiday let market amid strong demand from landlords.
Borrowers looking to purchase or remortgage a holiday rental property within England and Wales can now choose to do so using any product from the lender’s specialist buy-to-let (BTL) range. Product offerings from the lender also include green mortgage options.
Keystone will lend up to 75% loan to value (LTV) on holiday lets for those wanting to borrow up to £750,000 and 70% LTV for those wanting to borrow up to £1m.
Borrowers must earn a minimum of £40,000 a year, must own one buy-to-let (BTL) and their holiday let must be furnished in order to qualify for the products offered by the firm. The rental agreement must not exceed six months.
Rates start at 3.34% for a two-year fixed rate up to 65% LTV with a 2% arrangement fee and £145 application fee.
At 75% LTV, a two-year fixed is 3.54% up to 75% with the same fees.
A five-year fix at 65% LTV is 3.49% or 3.69% at 75% LTV with the same fees.
Keystone offers rates starting from 3.24% within its green mortgage range for properties that are five years old or more and have an EPC rating of C or above.
The valuation and rental coverage of holiday let properties will be assessed on the same basis as a standard buy-to-let.
Keystone Property Finance marketing director Phil Riches says: Staycations have always been popular with British holidaymakers but even more so with the restrictions on international travel the past 18 months.
He says: However, despite the popularity of domestic holidays, there are very few lenders out there offering loans on holiday lets. We are confident that demand for home-based holidays is here to stay and we are very excited now to be a part of this fast-growing part of the market.
