Hodge has boosted its holiday let loan criteria and cut rates across most of the range by up to 17 basis points.
The specialist bank has moved its five-year stress rate to pay rate – and its pound for pound stress rate to a maximum of 5.5%, or pay rate-plus 1%.
It also lifts its maximum loan size of £1.5m up to 75% loan to value, and will consolidate debt up to 75% LTV. The lender will also consider properties, above and adjacent to, commercial premises on holiday let loan applications.
Highlights of the firm’s reductions include:
- Holiday buy-to-let two-year fixes up to 75% LTV, down 17bps to 6.28%, with a £995 fee
- Holiday BTL two-year fixes up to 75% LTV, down 17bps to 5.98%, with a £1,995 fee
- Holiday BTL five-year fixes up to 75% LTV, down 15bps to 5.75%, with a £1,995 fee
Hodge business development director Emma Graham says: “The holiday let market has gone through some ups and downs since the pandemic, but we still see these properties as a good investment for many.”
“This is reflected in our criteria changes including increasing our maximum loan size, considering properties above or adjacent to commercial premises and properties with annexes or two kitchens.”
“Our lighter touch underwriting stance on holiday let will hopefully make it easier for intermediaries to work with us, and ultimately help their clients get the mortgage and property they want.”
