Hanley Economic Building Society enters holiday let market

The lender's first holiday let range includes a two year variable discount mortgage with an initial pay rate of 5.54%, representing a 2.20% discount from its standard variable rate, currently 7.74%.

A second variable discount mortgage, available for the term of the loan, has an initial pay rate of 5.40%, a 2.34% discount from the society's current SVR.

Both products are available for purchase and remortgage on either a capital and interest or interest only basis, subject to the lender's interest only criteria.

The range has a minimum loan size of £30,000 and a maximum of £600,000.

Criteria include applications from expats with foreign income, up to 90 days of personal property use each year and first time landlords. There are no geographical restrictions and properties marketed through Airbnb are accepted.

Applications will be individually assessed by Hanley's in house underwriting team without credit scoring. The products will be available through selected intermediary channels.

Samantha Ward, commercial director at Hanley Economic Building Society (pictured), commented: "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.

"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."