Hodge cuts holiday let rates and enhances criteria

Hodge has announced a series of enhancements to its holiday buy-to-let mortgage criteria, including reduced rates across most of its product range by up to 17bps.

Its two-year fixed rates now start from 5.98% with a £1,995 fee, 6.08% with a £1,495 fee, 6.28% with a £995 fee or 6.75% fee-free

Five-year fixes have reduced to 5.75% with a £1,995 fee, 5.85% with a £1,495 fee, 6.05% with a £995 fee and 6.20% fee-free.

The specialist lender is also moving its five-year stress rate to pay rate and pound-for-pound stress rate to the maximum of 5.5% or pay rate +1%.

In addition, it is now providing a maximum loan size of £1.5m up to 75% LTV, offering debt consolidation up to 75% LTV and considering properties above and adjacent to commercial premises on holiday let applications.

Emma Graham, business development director at Hodge, said: “We are pleased to be able to make these rate and criteria changes to our holiday let products at a time when the market is under a lot of stress from increased regulation and costs from local authorities.

“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.

“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.”