Holiday Let – 2 Year Discount 80% Remortgage

Maximum Loan to Value (LTV) 80% LTV
Initial Variable Interest Rate, currently 3.64% (2.35% discount from the Society’s Standard Variable Rate for 2 years. The discount is subject to a minimum interest rate “floor” of 2.00%).
Followed by our Standard Variable Rate thereafter, currently 5.99%
The Overall Cost for Comparison  5.9% APRC
Interest Calculated Daily

The following is a representative example based on a mortgage of £152,613 payable over 25 years initially on a discounted variable rate of 3.64 % for 2 years followed by our Standard Variable Rate of 5.99%.  In this example you would make an initial payment of £836.48, then 23 monthly payments of £775.60 followed by 276 monthly payments of £968.30.

The total amount payable would be £287,699.68 made up of the loan amount plus interest of £133,313.08 and the following costs, a Scheme Fee of (£1,144.60), a Chaps/Telegraphic Transfer fee (£25.00), a Valuation Fee (£175), Legal Fees (£354) and a Mortgage Exit Administration Fee (£75.00).

The overall cost for comparison is 5.9% APRC representative.

Note: What you will pay may vary from this and will depend on your personal circumstances.

Early Repayment Charge 2.35% of the redemption balance for 2 years.
Application Fee There is no Application Fee payable for this product.
Scheme Fee 0.75% of the loan (can be added to the loan, subject to LTV, or paid on completion. Fees added to the loan will accrue interest. Further details are available on application).
Mortgage Exit Administration Fee £75.00 (paid on redemption).
Standard Valuation Fee Paid directly to valuer by the applicant – see Valuation Fee Scale for details.
A standard mortgage valuation is required on all properties.
Procuration Fee A Procuration Fee will be paid to the Introducer by the Society upon completion of the mortgage. Please refer to your mortgage Introducer for details.
Cashback The Society will pay the applicants £500 cashback on completion of the mortgage  to support the costs associated with moving their mortgage to the Society

Applicants must have a minimum gross annual income of £30,000 (single applicants) and £35,000 (joint applications).  Our decision to lend is based on your client(s) meeting minimum income requirements and Income Coverage Ratios (ICRs).

  • Basic rate tax payers – holiday let rental yield* must cover 140% of the mortgage interest payment when stress tested at the higher of 5.50% or the mortgage interest rate plus 2.00%.
  • Higher and additional rate tax payers – rental yield *must cover 160% of the mortgage interest payment when stress tested at the higher of 5.50% or the mortgage interest rate plus 2.00%
  • Monthly rent calculated using an average of 60% of annual rental income to take account of low, mid and high season income divided by 12
Age Minimum – 21 Years
Maximum – No Age Limit
Term Minimum – 2 Years
Maximum – 40 Years
Loan Size Minimum – £80,000
Maximum – £500,000 (Subject to LTV, please refer to our current criteria for details)
Availability Maximum of 3 mortgaged investment properties (Holiday or Buy to let) in portfolio permitted. Available in England & Wales only, excluding London & the Outer South East and excluding Scotland.

Properties must have an EPC rating of E or above.

The Society will consider properties advertised online for let via services such as Airbnb

Further Holiday Let lending criteria applies. For full details please contact our experienced underwriters on 01257 235 001 – Option 2 or at

Overpayments The Society will allow overpayments of up to 10% of the redemption balance per annum without invoking an early repayment charge.
Portability You can keep this mortgage should you move to a new property. This mortgage is portable subject to your status meeting our criteria.
Insurance Landlords insurance on the property to be mortgaged is compulsory.

This is a limited issue and the Society reserves the right to withdraw this scheme without notice at any time.